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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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

Car companies will often offer incentives to help their trade-in customers offset negative equity, with some brands tending to offer more because their cars depreciate faster.

From MarketWatch • Apr. 28, 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

The average amount a borrower with negative equity carries on a vehicle has jumped more than 40% since 2021.

From The Wall Street Journal • Apr. 26, 2026

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