05/30/2026
Auto debt continues to climb as higher vehicle prices and interest rates put pressure on household budgets.
A recent report found that total auto debt reached $1.68 trillion at the end of 2025, up 37% from late 2018. Nearly 86 million Americans, or about 1 in 4, now carry auto loan or lease debt.
Monthly payments have also increased. The typical auto loan payment rose from about $506 in 2018 to more than $680 by the end of 2025.
Several factors are contributing to the shift, including higher vehicle prices, fewer lower-cost new car options, and longer loan terms. More buyers are also taking on larger monthly payments, with $1,000 auto loan payments becoming more common for financed new-vehicle purchases.
For many households, higher transportation costs can affect other parts of the budget, including groceries, rent, savings, and emergency funds.
These trends highlight how vehicle affordability can play a larger role in everyday financial decisions.
Source:
Auto debt has swelled to $1.68 trillion, a new analysis finds. Americans face costlier vehicles, higher interest rates and lengthier loan terms.
