The U.S. car loan market is facing a crisis with record levels of negative equity and delinquency rates. Edmunds.com reports that average negative equity hit a record $6,054 in November, the highest since April 2020. Auto loan debt is the third-largest consumer debt category at $1.595 trillion. Fitch Ratings indicates a record high delinquency rate for subprime auto loans at 6.11% in September 2023. The Manheim Used Vehicle Value Index shows a 5.8% year-over-year drop. High interest rates are burdening borrowers, especially those with poor credit. CarMax Inc. (NYSE:KMX) is in focus as its earnings report on Dec. 21, 2023, could reflect these market conditions, with an expected EPS of $0.43 and quarterly revenue of $6.3 billion.