Sanjiv Yajnik says high vehicle prices and long loans are not alarming

5 articles · Updated · CNBC · May 9

Capital One Auto says median monthly ownership costs rose to $525 from $390 since 2019, while payment-to-income stayed near 10% and 80% of financed buyers remained below a 15% threshold.
Yajnik argues longer terms can keep cars affordable if consumers keep vehicles longer, even as higher rates, insurance and maintenance costs raise total ownership expenses.
Critics warn six-year-plus loans leave more buyers underwater: Edmunds says 26% of used-car trade-ins had negative equity averaging $5,105, and 90.2% of new-vehicle negative-equity loans ran at least 72 months.

As auto loan defaults hit a 32-year high, are 'responsible' borrowers actually trapped in an inescapable debt cycle?

Is the auto debt crisis a symptom that essential goods are now fundamentally unaffordable for the average family?