Record Auto Debt and Rising Payments Trap Buyers in Negative Equity
The average monthly payment for a new vehicle reached $787 in the third quarter of 2026, with over 20% of borrowers facing four-figure monthly costs. Average new-vehicle loans now total $44,664, and more than 25% of loans extend beyond seven years. Consequently, 29.1% of trade-in buyers are underwater, owing an average of $7,107 more than their vehicles are worth. These buyers roll this debt into new loans averaging $57,235, resulting in monthly payments of $952 and lifetime interest costs exceeding $16,600.