---
title: Turning Underwater/Negative Equity Into a Smarter Way Forward
description: Negative equity in vehicles is at a four-year high. Why wait months for repairs and pile on debt? ClaimBuyout helps you close the equity shortfall faster.
---

[ClaimBuyout | Blog ](https://claimbuyout.com/en/blog)

# [Turning Underwater/Negative Equity Into a Smarter Way Forward](https://claimbuyout.com/en/blog/turning-underwater-into-a-smarter-way-forward)

 Written by [Robert Guerrero](https://claimbuyout.com/en/blog/author/robert-guerrero) | Aug 14, 2025 5:56:37 PM

###### **Turning “Underwater” Into a Smarter Way Forward **

**Negative Equity in Cars Today**

 

***By [Robert Guerrero](https://meetings.hubspot.com/robertg5), President & Co-Founder, ClaimBuyout***

> **As the CEO and Co-Founder of ClaimBuyout, I hear it daily: **“I owe too much on my car.”**  
> And more often lately, it’s not just a figure of speech—it’s a financial reality. **

**Negative equity in vehicles is at a four-year high. In Q2 2025, 26.6% of trade-ins had negative equity, with an average shortfall of $6,754. Nearly a quarter of those owners were $10,000 or more underwater, and 7.7% owed $15,000+ (Edmunds, Axios, Wall Street Journal). [CarEdge](https://caredge.com/guides/how-to-avoid-negative-equity-car-loans) data shows this trend is accelerating—39% of financed vehicles were underwater by the end of 2024, up from 31% just a quarter earlier.**

#### These aren’t abstract statistics

**They’re working families, small business owners, retirees—people blindsided by the cost of living, higher interest rates, and a damaged vehicle they no longer trust.**

**And when a car accident happens, the dilemma intensifies. Traditionally, the choices are bleak:**

- **Repair a car with diminished value and a flagged Carfax.**
- **Roll negative equity into a new loan, making payments balloon—Edmunds reports an average $915/month for those in this situation.**
- **Wait months—not just 30 or 60 days, but often up to 5 months or more—for parts and shop availability, all while paying for costly rental cars.**

**And here’s a crucial piece that often gets overlooked: you’re still paying your car loan every single month on a vehicle you can’t even drive.**

> # Why wait months for repairs and pile on debt?
> 
> # ClaimBuyout pays a fair price using your insurance repair estimate and helps you close the equity shortfall faster.

 

- **Imagine your car payment is $600/month. Being without your car for 5 months means you’ve spent $3,000 on payments alone—money you’re footing while stuck in limbo.**
- **That’s $3,000 you could instead apply directly toward your upside-down loan, reducing the burden and moving forward sooner.**

#### ClaimBuyout was built to change that equation

**We step in after the accident—before repairs—and buy the vehicle as-is, based on pre-accident value. We pay your lienholder directly, and you walk away from the damaged vehicle without the months of stress, the diminished resale, or the endless delays.**

 

 

#### [Learn more about how this can work for you!  ](http://claimbuyout-9019039-hs-sites-com.sandbox.hs-sites.com/bid)

[View full post](https://claimbuyout.com/en/blog/turning-underwater-into-a-smarter-way-forward)

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