WEST PALM BEACH, Fla. — Car payments are on the rise, and it's putting more pressure on budgets.
According to Bankrate, the average payment on a new car is about $737 and $520 for used vehicles.
WATCH BELOW: Have an upside-down car loan? Here's what you can do
Even more concerning is the number of loans that are currently underwater, meaning the balance exceeds the vehicle's value.
Edmunds estimates that one in four car loans are underwater. Also, nearly 25% have a negative equity of $10,000 or more.
"It helps if you're a good customer with the bank," Chip Lupo of WalletHub said.
WPTV asked Lupo about ways to crawl out from an upside-down car loan.
"If you've been a long-standing customer if you have a relationship that helps, always explain the situation," Lupo said. "They want your business, so they'll work with you."
There are several reasons loans can go upside down or underwater.
Used cars were selling at much higher prices a couple of years ago during the pandemic and people's job situations and salaries can change.
Some options include trying to sell the car privately instead of to a dealer.
Refinancing a car loan is also possible.
"You want to make sure you have a pretty decent credit score before you go in — if you want to get a favorable rate," Lupo said. "Check it out, do some shopping. Credit unions tend to offer lower rates than traditional banks."
