To give an idea of how much these short-term shoppers can potentially save by switching to leasing, Edmunds found that the difference between the average monthly payment on a new car purchase ($505) was $77 more than the average monthly lease payment ($428) in the third quarter. In general, new car leasing is at its highest level ever. Leasing made up an estimated 33 percent of new car transactions in 2016, through October.
The phenomenon of upside down trade-ins is not limited to new car purchases. According to Edmunds' Q3 Used Vehicle Market Report, a record 25 percent of all trade-ins toward a used car purchase in the third quarter had negative equity. These shoppers had an average of $3,635 of negative equity at the time of trade-in, also a Q3 record in the used car market.
Edmunds generally recommends that all car shoppers wait until they have equity in a vehicle before they trade it in for another car. But, in cases where shoppers feel that their only choice is to trade in a car when they're underwater, Edmunds lays out a few strategies to minimize – or even avoid -- the financial blow in its consumer advice piece "Upside Down and Under Water on a Car Loan."
Car shopping destination Edmunds.com serves millions of visitors each month. With Edmunds.com Price Promise®, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Shoppers can browse not only dealer inventory, but also vehicle reviews, shopping tips, photos, videos and feature stories on both Edmunds' wired site and on its acclaimed mobile apps. Regarded as one of the best places to work in Southern California, Edmunds.com was also named one of "The World's Top 10 Most Innovative Companies of 2015 in Automotive" by Fast Company. Edmunds welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and firstname.lastname@example.org, via text at ED411 and on Twitter and Facebook. The company is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich., but you can find Edmunds from anywhere on YouTube, Pinterest, LinkedIn, Instagram, Google+ and Flipboard.
Edmunds.com Corporate Communications
Media Hotline: 310-309-4900
Logo - http://photos.prnewswire.com/prnh/20130612/MM31390LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/more-car-shoppers-are-underwater-on-their-trade-ins-than-ever-before-reports-edmundscom-300362269.html