WASHINGTON (TNND) — More Americans are underwater on car loans, owing more money than ever.

According to car comparison site, Edmunds, almost a quarter of Americans, 24.2%, are upside down on their auto loans, meaning they owe more than the car is worth.

To make matters worse, the average amount owed is the highest ever at mean cost of $6,458.

Vehicle prices have gone up. So, vehicles are just more expensive, inherently," explained Jessica Caldwell, Edmunds' head of insights.

"What we saw just a few years ago, there was an inventory shortage, so people were paying above MSRP. When you do that, you obviously owe a lot more money and you start to have a longer loan term. And you know, a few years down the road, you decide you don't want the vehicle, and now you go to sell it, and because you overpaid, you bought high, you're selling at a much lower rate."

Caldwell said the average cost for a new car is around $47,000 -- which has been the standard price for around three years -- and $28,000 for a used one -- again reflecting a three-year mean.

Both numbers represent relative high watermarks for vehicle costs.Higher interest rates are a factor in the prices, with the average for a new vehicle standing at 7.1%, and 11.2% for a used car.

We're seeing Fed rate cuts, but not necessarily. It's not going to make a massive impact," Caldwell said. "Continuation of the cuts from the Fed, I think that's definitely going to help, especially if you're someone that's getting like 6% because a half a point or a whole point is going to make a big difference.

Over one in five consumers with negative equity owes more than $10,000 on their auto loan.

"The amount of people that are underwater in their loans is probably going to continue to get higher, just because it's a function of how much prices have gone up," she added.

To avoid the issue, experts suggest keeping a car as long as possible, at least for the entirety of the loan. Also, try to get the shortest term available, and nothing longer than six years.