US Vehicle Debt Hits $1.68 Trillion as $1,000 Pickup Truck Payments Spread
Updated
Updated · streamlinefeed.co.ke · May 28
US Vehicle Debt Hits $1.68 Trillion as $1,000 Pickup Truck Payments Spread
2 articles · Updated · streamlinefeed.co.ke · May 28
$1.68 trillion in U.S. vehicle debt has now overtaken credit card balances, with new data showing a growing share of consumers carrying $1,000-plus monthly payments tied largely to pickup trucks.
Full-size pickups routinely top $60,000, and at roughly 8% interest a $55,000 five-year loan produces a payment near $1,115, after automakers stripped out cheaper trims and loaded trucks with premium features.
Experian data earlier showed nearly 19% of new auto loans already exceed $1,000 a month, up from 17.4% a year earlier and 5.4% five years ago; Ford F-150, Chevrolet Silverado and Ram 1500 lead the list.
Analysts warn those payments are squeezing household spending and savings, while regulators are increasingly focused on securitized subprime-style auto loans that could sour quickly in an economic downturn.
Beyond soaring payments, what systemic risks are hiding within the record $1.69 trillion of auto debt?
With $1,000 car payments now common, is the U.S. auto market driving toward an affordability cliff?
When popular trucks command luxury prices, is affordable transportation becoming a myth?