Capital One's Auto Lending Bet: Longer Loans, Steady Payments

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Source: CNBC
Capital One's Auto Lending Bet: Longer Loans, Steady Payments
Photo: CNBC
TL;DR

Capital One Auto President Sanjiv Yajnik says rising auto debt and high used-car prices aren’t worsening affordability, noting the payment-to-income ratio has stayed around 10% since 2019 and most buyers finance under 15%. To keep monthly payments manageable, many are taking 72–84 month loans, a trend that can slow equity buildup and raise the risk of negative equity, though consumers still rely on cars for work and daily needs.

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