As car prices rises, auto loans stretch to 10 years or more

Core Insights - The car market is facing an affordability crisis, with average monthly payments exceeding $750 and loan terms extending to eight to ten years [1][4] - New vehicle prices have surged over 30% since 2020, pushing the average price above $50,000 for the first time [2] - The shift from standard five-year loans to longer terms is a response to rising prices and interest rates, leading to increased interest payments and depreciation risks for buyers [5][9] Price Trends - Auto debt has reached approximately $1.6 trillion, with auto-loan delinquencies nearing 15-year highs, attributed to high monthly payments [6] - The automotive industry has largely moved away from the sub-$30,000 market segment, limiting affordable options for buyers [7] - Recent inflation data indicates used-car prices have increased by about 3.6% since 2024, further constraining buyer negotiations [8]