The used car market is experiencing a financial crisis that's hitting consumers right in the wallet. With negative equity on trade-ins reaching a staggering record high of $6,838, many car owners are finding themselves trapped in vehicles they can no longer afford to keep—or trade in.

Brad Parker, CEO of PrivateAuto, joins us to break down this troubling trend and explain why so many Americans are underwater on their car loans. The perfect storm began during the COVID era when inventory shortages drove prices to unprecedented levels. Consumers who purchased vehicles then are now facing a harsh reality: their cars are worth significantly less than what they still owe, creating a financial trap that's increasingly difficult to escape.

The ripple effects are being felt throughout the automotive ecosystem. Dealerships struggle to source used inventory as fewer trade-ins hit the market. Banks tighten lending standards as their portfolios show signs of stress. And with the average new car costing around $45,000, monthly payments are skyrocketing beyond $900—rivaling what used to be mortgage payments. Add looming tariffs that could raise prices even further, and we're looking at a market under tremendous pressure.

Yet amid these challenges, Parker reveals an unexpected statistic: 47% of all used cars are sold privately between individuals. This massive segment of the market has traditionally been plagued by trust issues—"the armpit of all transactions," as Parker colorfully describes it. His company is pioneering technology solutions that verify buyer and seller identities, authenticate vehicle titles, detect liens, and facilitate secure payments, potentially transforming how Americans buy and sell cars privately.

Whether you're currently underwater on your car loan or simply planning your next vehicle purchase, this episode delivers crucial insights on navigating today's challenging automotive landscape. Tune in to understand the market forces at play

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