Your Car Loan Is Underwater and Interest Rates Are Soaring. What Now?

The used car market is experiencing a financial crisis that's hitting consumers right in the wallet. With negative equity on trade-ins reaching a staggering record high of $6,838, many car owners are finding themselves trapped in vehicles they can no longer afford to keep—or trade in.

Brad Parker, CEO of PrivateAuto, joins us to break down this troubling trend and explain why so many Americans are underwater on their car loans. The perfect storm began during the COVID era when inventory shortages drove prices to unprecedented levels. Consumers who purchased vehicles then are now facing a harsh reality: their cars are worth significantly less than what they still owe, creating a financial trap that's increasingly difficult to escape.

The ripple effects are being felt throughout the automotive ecosystem. Dealerships struggle to source used inventory as fewer trade-ins hit the market. Banks tighten lending standards as their portfolios show signs of stress. And with the average new car costing around $45,000, monthly payments are skyrocketing beyond $900—rivaling what used to be mortgage payments. Add looming tariffs that could raise prices even further, and we're looking at a market under tremendous pressure.

Yet amid these challenges, Parker reveals an unexpected statistic: 47% of all used cars are sold privately between individuals. This massive segment of the market has traditionally been plagued by trust issues—"the armpit of all transactions," as Parker colorfully describes it. His company is pioneering technology solutions that verify buyer and seller identities, authenticate vehicle titles, detect liens, and facilitate secure payments, potentially transforming how Americans buy and sell cars privately.

Whether you're currently underwater on your car loan or simply planning your next vehicle purchase, this episode delivers crucial insights on navigating today's challenging automotive landscape. Tune in to understand the market forces at play

The Lupe' Tortilla Restaurants
Lupe Tortilla in Katy, Texas

Gulf Coast Auto Shield
Paint protection, tint, and more!

ProAm Auto Accessories
ProAm Auto Accessories: "THE" place to go to find exclusive and hard to find parts and accessories!

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

---- -----
Want more In Wheel Time car talk any time?

In Wheel Time is now available on Audacy!

Just go to Audacy.com/InWheelTime where ever you are.
----- -----
Be sure to subscribe on your favorite podcast provider for the next episode of In Wheel Time Podcast and check out our live multiplatform broadcast every Saturday, 10a - 12noonCT simulcasting on Audacy, YouTube, Facebook, Twitter, Twitch and InWheelTime.com.

In Wheel Time Podcast can be heard on you mobile device from providers such as:

Apple Podcasts, Amazon Music Podcast, Spotify, SiriusXM Podcast, iHeartRadio podcast, TuneIn + Alexa, Podcast Addict, Castro, Castbox, YouTube Podcast and more on your mobile device.

Follow InWheelTime.com for the latest updates!

Twitter: https://twitter.com/InWheelTime

Instagram: https://www.instagram.com/inwheeltime/

https://www.youtube.com/inwheeltime

https://www.Facebook.com/InWheelTime

For more information about In Wheel Time Car Talk, email us at

info@inwheeltime.com

Tags: In Wheel Time, automotive car talk show, car talk, Live car talk show, In Wheel Time Car Talk

Chapters

• 0:00 Podcast Introduction
• 0:52 Negative Equity on Used Car Trade-ins
• 9:42 Private Auto's Solution for Car Transactions
• 19:34 Racing Calendar and Auto History
• 26:15 Automotive News Headlines
• 30:32 Show Wrap-up