Edmunds: 26 Percent of Consumers Upside Down
March 29, 2005
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SANTA MONICA, Calif. (March 29, 2005) -- On average, vehicle buyers reported $3,646 in negative equity on their new vehicle purchase in February, according to an Edmunds.com poll.
The poll found that 26 percent of consumers in February were upside down. These upside-down consumers said they consider negative equity as "just part of the car-buying process."
"It would be an excellent idea for consumers in an upside-down situation to apply their tax refund to their car loan to pay off their negative equity," explained Philip Reed, Edmunds.com senior consumer advice editor.
"People who roll negative equity into subsequent car loans put themselves into an unwise, expensive economic situation," he continued. "They will be paying off cars they no longer own while also paying down the loan of their current cars."
The Internal Revenue Service said that consumers are receiving an average of $2,294 in tax refunds this year.
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