Cars That Dealers Screwed Buyers Over On During COVID Are Still Underwater On Their Loans
Posted on 7/22/2026 by Agent009
During the peak of the COVID supply shortage, dealers greedily raked in money hand over fist as customers who needed cars were faced with two choices: overpay or live without transportation. Now, many of those customers are looking to trade in their COVID-era purchases on something new, and finance departments are fighting uphill battles trying to get them approved for credit because nearly a third of them are now completely underwater on their existing loans.
Edmunds sounded the alarm earlier this year after the number of underwater customers being denied new loans began to spike. Back in March, we saw a report that more than 25% of buyers carried negative equity from a previous loan. As of Q2, that number had reached 30%, Automotive News reports, and has held steady since.