negative equity

noun

: a situation in which the amount of money that a person owes for something (such as a house or a car) is more than the thing is worth

Examples of negative equity in a Sentence

Recent Examples on the Web

People who carry negative equity in their current vehicles — owing more than the car is worth — are unlikely to realize much in savings in the transition. — Chris Teague, AJC.com, 15 May 2026

The average negative equity trade-in was $7,183 during the quarter for new vehicles, according to Edmunds. — Michael Wayland, CNBC, 9 May 2026

Of those who are underwater, more than a quarter of those customers rolled $10,000 or more in previous debt into their new loans—a new record high—pushing the average amount of negative equity rollover north of $7,000 for the first time ever, Automotive News says. — Byron Hurd, The Drive, 4 Mar. 2026

And Edmunds’ data indicates financial strain among those trading in their cards, with nearly a third showing negative equity, said Ivan Drury, Edmunds’ director of insights. — Jeanne Sahadi, CNN Money, 28 Jan. 2026

Rhymes for negative equity

• inequity