Auto Debt Hits Record High
Auto debt hit a record HIGH at the end of 2025, totaling $1.68 trillion according to new data recently submitted to CNBC.
Total debt is up 37% since 2018, and this number includes both car loans and leases.
New car prices are also on the rise - as well as higher payments and longer loans.
An average auto loan payment is around $680 per month and 20% of people have a loan payment over $1,000.
Rough.
AND about 23% of people are financing new cars for 7 years or more.
Double rough.
Stretching out the loan timeline may lower the monthly payment, but consumers ultimately pay more in interest over the life of that loan.
It's good to be aware that new cars lose about 40% - 60% of their value by year 5.
If you can find a reliable car that's 3-5 years old, then you may be able to help offset some of the high costs and depreciation associated with car ownership.
And if you really want that new car smell, ask the used car dealership to include a full detailing inside the car before you drive it off the lot...
OR find a local car shop to do it if you already own a car.
$300 for a full detail is so much better than $30,000 for a new car.
Also, if you're looking to save on your car insurance, then we recommend trying out this tool below to compare rates:
🚗 Save On Your Car Insurance
You might be overpaying to insure your car, so check it out!