As human beings, we don’t spend much time hanging upside down. However, a growing number of Americans are finding themselves exactly in this position when they arrive at a dealership looking to buy a new car.

They’re upside down on their car loan.

Upside-down car loans, or negative equity, happen when consumers owe more on their vehicle than its actual value. It’s becoming a common occurrence for owners looking to trade in their car for a new one.

A 2003 survey by Edmunds.com, an automotive information Web site, found that 40 percent of new-car buyers are “upside down” with an average negative equity of $2,200. In a more recent poll, 26 percent of responders consider trading in a car with negative equity to be “just part of the car-buying process.”

Home State Bank Senior Vice President John Spreiter said consumers most often find themselves in this position when they finance their vehicles over several years. Consumers want low monthly payments, so they may choose car loans upward of 72 months.

“Where they really run into trouble is three, four years down the line they want to replace the vehicle, but they owe more than what it’s worth,” he said.

Read tips to avoid finding yourself upside-down in the April 17 Independent Review.