58.5% of US Car Buyers Go Underwater as 72-Month-Plus Auto Loans Hit 29.7%

2 articles · Updated · CarScoops · May 19

58.5% of U.S. car buyers with auto loans now owe more than their vehicles are worth, nearly 540 basis points above a year ago even after easing from a recent record.
29.7% of new auto loans in April ran longer than 72 months, a record high, as buyers stretch terms toward seven years to keep monthly payments manageable.
Median monthly car payments have climbed to $525 from $390 since 2019, while a $30,000 loan at 9% APR costs about $9,226 in interest over 84 months versus $5,105 over four years.
Lenders are not pulling back: Capital One Auto said payment-to-income ratios have stayed near 10% across income groups, with 80% of financed buyers below the 15% risk threshold and approvals rising in April.

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