Westlake Village, Calif. - The percentage of negative equity for the first quarter of 2008 is the lowest it has been in this period for the past three years, according to the Power Information Network (PIN). The drop in upside down trades to 29 percent comes after a downward trend for several calendar quarters.

The report, released March 7, said that despite the drop in upside down trades, those consumers that do trade with negative equity owe more than in the past. “So far in the first quarter of this year, the average negative equity amount has been $3,930, up from $3,587 three years ago,” the report said.

The report suggested these trends could be due to consumers with modest negative equity on their vehicles refraining from trading those vehicles in, and those that are the most upside down continuing the trade-in trend.