Edmunds reports the average amount owed on upside-down car loans reached a new record of $6,905 in the third quarter as more new car buyers traded in vehicles burdened by negative equity.

Analysts say 28.1% of trade-ins had negative equity in Q3, up from 26.6% in Q2 and 24.2% in Q1. That’s the highest rate since a record 31.9% share in Q1 2021. The news follows a host of persistent affordability issues reported by Edmunds earlier this month.

In a release, Director of Insights Ivan Drury says the numbers “should be a wake-up call” for the industry.

“Nearly one in three upside-down car owners owe between $5,000 and $10,000 — and a growing share owe far more than that,” Drury writes. “Much of this stems from shoppers trading out of vehicles too quickly or carrying loans taken out during the pandemic car market frenzy, when prices were at record highs. Those choices are now catching up, making it far harder to buy again without piling on even more debt.”

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