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negative equity

British  

noun

  1. the state of holding a property the value of which is less than the amount of mortgage still unpaid

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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The average age of a trade-in with negative equity is now 4.3 years, according to Edmunds.

From MarketWatch Apr. 28, 2026

The average underwater trade-in now carries $7,183 in negative equity, according to Edmunds — with the largest share, 41%, being underwater by $5,000 or less.

From MarketWatch Apr. 28, 2026

This practice, however, is catching up with many drivers: Nearly 31% of vehicle trade-ins now carry negative equity, meaning the amount owed on the loan is more than the car is worth.

From MarketWatch Apr. 28, 2026

In 2026, buyers with negative equity financed an average of nearly $56,000 for a new car in the first quarter, about $12,000 more than the typical new-vehicle buyer, Edmunds said.

From The Wall Street Journal Apr. 26, 2026

About a third of Americans trading in an older car have negative equity, which has been typical in the industry for years.

From The Wall Street Journal Apr. 26, 2026

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