Core Insights - The rising cost of new vehicles has led to increased monthly payments, prompting borrowers to extend auto loan terms to unprecedented lengths [1][4]. Group 1: Loan Trends - Borrowers are opting for longer auto loans, with terms stretching to 100 months or more, which can significantly reduce monthly payments [2][3]. - Approximately one-third of buyers are now taking loans lasting at least 72 months, with a growing number extending loans to 85, 96, or even 100 months [5]. Group 2: Financial Implications - The average price of a new car surpassed $50,000 in fall 2025, resulting in an average monthly payment reaching a record high of $758 [4]. - While longer loan terms lower monthly payments, they also lead to higher total interest costs over the life of the loan; for example, a $50,000 loan at 5% interest would cost about $6,600 in interest over five years, but extending it to 100 months increases total interest to around $10,000 [6][7].

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]