The Ramsey Show Youtube Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. American households carry $1.66 trillion in auto loan balances collectively as of Q3 2025, according to the Federal Reserve Bank of New York (1). While there may be many different reasons that justify taking on massive auto debt, for Emmanuel from Texas, that justification appears to be a “super difficult mother-in-law.” As he explained to Dave Ramsey on an episode of The Ramsey Sho ...

Core Insights - The bankruptcy of Tricolor Holdings highlights the severe financial struggles faced by many Americans, particularly in the auto loan sector [1][2][3] Company Overview - Tricolor Holdings, a used-car dealer based in Dallas, specialized in providing loans to individuals with poor credit and operated 65 dealerships across six states [1] - The company was recognized by major investors like BlackRock for its efforts to assist underserved communities, but it was ultimately in significant financial distress [3] Industry Context - The auto loan crisis is exacerbated by rising car prices, which average just under $50,000, and increasing loan rates, exceeding 9% for new cars and nearly 14% for used cars [6] - Total household debt in the U.S. has reached a record $18.39 trillion, with Americans allocating approximately 11% of their income to debt payments, limiting their ability to spend on essentials [5] Financial Impact - Fifth Third Bank reported losses of up to $200 million due to "fraudulent activity" at Tricolor, while JPMorgan Chase faces similar risks with about $200 million at stake [4] - Origin Bank has an additional $30 million tied to the failed company [4] Demographic Insights - Young borrowers, particularly from Gen Z, are experiencing the highest rates of delinquency on auto loans, with 7.5% behind on payments [7] - States like Mississippi, Louisiana, and Georgia are leading in the percentage of auto loan borrowers with late payments [7]