A new report and analysis of consumer credit data by The Century Foundation (TCF) and Protect Borrowers lays out a stark reality: owning a car has become increasingly unaffordable for families, driving millions of Americans into financial distress.

Car prices, auto loan balances, and interest rates are sky-high and continue to rise, and families are increasingly having to turn  to auto loans with repayment timelines over seven years-long, just to afford monthly payments and make ends meet. Much of this crisis has been and continues to be driven or exacerbated by President Trump’s failed economic agenda: aggressive tariffs and chaos is causing inflated interest rates and higher car prices, and war with Iran has sent the average cost of a gallon of gas up to $4.39 (at the time of publication).

The analysis tells a troubling story:

  • Since 2019, the average origination balance for an auto loan grew by more than $10,000 (to $33,519), far outpacing inflation.
  • The average interest rate for auto loans is nearly 10 percent, up from 7.5 percent in 2018.
  • Nearly 15 percent of new auto loans have terms longer than seven years, up from 7.1 percent in 2018.
  • Rural borrowers carry more auto debt on average, and Black, Hispanic, and Native borrowers face the highest interest rates across all credit tiers.

TCF and Protect Borrowers also released state-by-state fact sheets that provide a glimpse into the growing auto loan debt crisis in each state.

Read the Report and Analysis: When the Wheels Come Off: How Surging Auto Loan Debt Is Hurting Households

View the Fact Sheets: May 2026 Auto Loan Debt Fact Sheets

Read the Press Release: NEW STUDY: 86 Million Americans Now Carry a Record $1.68 Trillion in Auto Debt Amid Tariff and Gas Price Crunch, Debt Up Nearly 40% Since 2018

Fact Sheet Sources

The Century Foundation and Protect Borrowers analysis of University of California Consumer Credit Panel. Where stated, comparison periods used are 2018 Q4 to 2025 Q4. All other data is from 2025 Q4. Loans with terms over 84 months are reported as loans with terms over seven years.

  1. When included, “new” includes new car loans appearing on Americans’ credit reports in 2025 Q4.