The average positive equity value on trade-ins toward U.S. new-vehicle purchases reached a record $13,330 in the second quarter — nearly double pre-pandemic levels — and more than two-thirds of trade-ins toward new-vehicle loans remain above water, according to new data from Edmunds.

Edmunds Director of Insights Ivan Drury says those customers have largely cleared the depreciation curve and, with used-vehicle values still historically elevated, are routinely arriving at the dealership with a meaningful down payment catalyst that can improve payment fit and ease F&I conversations.

“Within the past two decades, equity accelerated the most between 2021 and 2022, when global supply chain constraints squeezed new-vehicle inventory and drove used-car values to levels that hadn’t been seen before,” Drury writes. “In Q1 2022, 83.6% of all trade-ins toward new-vehicle purchases carried positive equity, the highest share Edmunds has on record.”

Inventory has since recovered, slowing used-car demand and dropping the share of trade-ins with positive equity to 68.8% in Q2 2026 — closer to historical norms but still above the pre-pandemic era. Drury says the current environment is distinguished by a dollar value of positive equity that has continued to climb or hold near record highs for four consecutive years.

For dealers focused on affordability-challenged buyers, the data suggests proactive equity mining among owners of 2018–’20 mainstream vehicles could be among the most effective near-term conquest strategies. Edmunds analysts say the Honda CR-V was the most commonly traded-in vehicle with positive equity in Q2, averaging $10,545 and an average model year of 2019.3. The GMC Sierra 1500 had the highest average positive equity at $22,217 per unit with an average model year of 2020.4.

Edmunds recently reported that a record share of Q2 buyers stretched new-vehicle loans to 84 months or longer as affordability pressures intensified.

Read the full report at Edmunds