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.

Learn more about how this can work for you!