Americans' auto debt reaches $1.68 trillion as car payments top $1,000

14 articles · Updated · CarScoops · May 9

By Q1 2026, 20% of auto loans carried monthly payments of at least $1,000, while average new vehicle prices exceeded $49,000 and average rates rose to 6.9%.
The report said debt climbed 37% from $1.23 trillion in 2018 as incomes lagged, affordable models vanished and longer seven-year-plus loans accounted for 22.9% of financed new-car purchases.
Low-income borrowers faced average monthly payments of $738 and balances nearly $4,000 higher than top earners, while subprime rates above 18% risk leaving buyers underwater for longer.

Is America's deep-rooted dependency on cars creating an inescapable debt trap for millions of households?

As automakers abandon affordable models, is the American middle class being permanently priced out of new car ownership?

With auto debt at $1.68 trillion and delinquencies soaring, could the subprime market trigger the next major financial crisis?