Car Loan Debt Rises to a Record High

Americans are devoting a growing share of their paychecks to their cars, with auto debt climbing to a new high of $1.68 trillion at the end of 2025, according to a new analysis shared with CNBC. That's up 37% from late 2018, when outstanding auto loans and leases totaled $1.23 trillion, the Century Foundation and consumer advocacy group Protect Borrowers report. Nearly 86 million people—about one in four Americans—now carry auto debt. "People are seeing more and more of their paychecks eaten by their car payments," says Angela Hanks of the Century Foundation.

• The average new auto loan originated at the end of 2025 was about $33,500, up from roughly $24,800 in 2018. Over that period, the typical monthly payment rose from around $506 to more than $680.
• Lower-income borrowers, making under about $35,000 a year, are paying even more—an average of $738 a month—and carry balances nearly $4,000 higher than households earning over roughly $175,000.
• The average transaction price for a new vehicle is now close to $49,000, up from the mid-$30,000s in 2018, according to Edmunds.
• The average APR on new-car loans reached 6.9% in early 2026, and one in five financed new cars now comes with a loan of seven years or longer.