@zarekdevinee: 10/19/2026 A Reuters Breakingviews column warning that America's $1.7 trillion car loan market is headed for a crash is spreading fast today. That's a columnist's call, not a fact yet. The numbers under it are real, though: Americans owe $1.71 trillion on car loans, more than the $1.26 trillion on credit cards, according to the New York Fed. Payments are stretching. Edmunds says a record 21.2% of new car loans in the third quarter came with a payment of $1,000 a month or more. The average new car payment hit $787. The way people make it fit is time: a record 25.5% of new car loans now run 84 months or longer, and average total interest hit a record $9,938. Here's why longer loans are the real risk. A car loses value fastest in its first few years, and a 7-year loan pays down slowly. So for years you can owe more than the car is worth. The column says more than 30% of subprime loans made in the first half of 2026 won't be paid off until the car is over 12 years old, up from 7% at the end of 2019. That's a loan that can outlast the car's repairs, and sometimes the car. What happens when people trade in early: the debt doesn't disappear. Edmunds says 29.6% of trade-ins toward new cars were underwater in the second quarter, by $6,884 on average. That balance gets rolled into the next loan, and the payment on those loans averaged $944. What not to do: don't shop by monthly payment, shop by total price and total interest. Don't roll old car debt into a new loan if you can avoid it. And get a rate from your bank or credit union before you walk in. LendingTree says shopping around saved car buyers an average of $3,064 over the life of the loan. How many months is your car loan? #carloan #carbuying #PersonalFinance #debt #moneynews

Zarek Devine

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Monday 19 October 2026 22:53:05 GMT