Core Insights - Rising costs of purchasing and maintaining vehicles, driven by inflation and tariffs, are leading to increased auto loan defaults and repossessions, signaling potential economic crises for American consumers [1][2] - The Consumer Federation of America (CFA) highlights alarming trends in delinquencies and defaults that mirror those seen before the Great Recession [2] Auto Loan Defaults - The average price of a vehicle has reached nearly $50,000, with almost 20% of new car buyers paying $1,000 or more monthly [3] - Nearly 1 in 5 new car buyers in Q1 2025 are taking out loans that last seven years, while used car prices have increased by 6.3% year-over-year as of June 2025 [3] Consumer Debt and Regulatory Concerns - Americans currently owe over $1.66 trillion in auto debt, with the CFA expressing concerns over the lack of federal oversight as regulatory bodies like the CFPB and FTC have reduced their enforcement of predatory practices [4][6] - The CFA has called for an end to exploitative practices in the auto loan market, including interest-rate kickbacks between dealers and lenders [4] Government Response - The White House has indicated a commitment to restoring economic policies from the previous administration, which included tax cuts and deregulation, as a means to alleviate financial burdens on consumers [5]