Used car loans are sinking deeper underwater, study finds

The average borrower taking out a used car loan in the first quarter of 2023 borrowed 125% of the value of the car they bought, according to a new study.

Researchers from TransUnion
TRU,
+0.67%
and J.D. Power write, “As vehicle values have declined in recent quarters, used car loan-to-value ratios at origination have trended in the wrong direction for consumers.”