Turning “Underwater” Into a Smarter Way Forward

By Robert Guerrero, President & Co-Founder, ClaimBuyout

As the CEO and Co-Founder of ClaimBuyout, I hear it daily: “I owe too much on my car.”
And more often lately, it’s not just a figure of speech—it’s a financial reality.

Negative equity in vehicles is at a four-year high. In Q2 2025, 26.6% of trade-ins had negative equity, with an average shortfall of $6,754. Nearly a quarter of those owners were $10,000 or more underwater, and 7.7% owed $15,000+ (Edmunds, Axios, Wall Street Journal). CarEdge data shows this trend is accelerating—39% of financed vehicles were underwater by the end of 2024, up from 31% just a quarter earlier.

These aren’t abstract statistics

They’re working families, small business owners, retirees—people blindsided by the cost of living, higher interest rates, and a damaged vehicle they no longer trust.

And when a car accident happens, the dilemma intensifies. Traditionally, the choices are bleak:

• Repair a car with diminished value and a flagged Carfax.
• Roll negative equity into a new loan, making payments balloon—Edmunds reports an average $915/month for those in this situation.
• Wait months—not just 30 or 60 days, but often up to 5 months or more—for parts and shop availability, all while paying for costly rental cars.

And here’s a crucial piece that often gets overlooked: you’re still paying your car loan every single month on a vehicle you can’t even drive.

Why wait months for repairs and pile on debt?

ClaimBuyout pays a fair price using your insurance repair estimate and helps you close the equity shortfall faster.

• Imagine your car payment is $600/month. Being without your car for 5 months means you’ve spent $3,000 on payments alone—money you’re footing while stuck in limbo.
• That’s $3,000 you could instead apply directly toward your upside-down loan, reducing the burden and moving forward sooner.

ClaimBuyout was built to change that equation

We step in after the accident—before repairs—and buy the vehicle as-is, based on pre-accident value. We pay your lienholder directly, and you walk away from the damaged vehicle without the months of stress, the diminished resale, or the endless delays.

 

Buyout Example

• Pre-accident value: $60,000
• Remaining loan: $70,000 (already $10K underwater)
• Repair estimate + ClaimBuyout = $60,000 Buyout Offer

Yes, the owner still owes $10,000—but instead of being stuck with a compromised vehicle and mounting costs, they’re free to move forward immediately. It’s not painless—but it’s less painful.

Learn more about how this can work for you!