Rather than paying off the difference, many buyers roll this gap into their next loan, pushing themselves deeper into debt.
This percentage has DOUBLED since 2016 and is on track for its 3rd consecutive annual increase.
Buyers with negative equity financed an average of ~$56,000 for a new car in Q1 2026, ~$12,000 more than the average new vehicle buyer.
As a result, their average monthly payment rose to $932, the highest on record.
In March, car loan default rates jumped to their highest since 2010.
Auto-loan distress is surging.
https://i.redd.it/qk8697a32lyg1.jpeg
Posted by Boo_Randy_Revival
6 Comments
Source: [https://x.com/KobeissiLetter/status/2049963217456447928](https://x.com/KobeissiLetter/status/2049963217456447928)
pay for nearly 10 years….I doubt most cars now will even outlast the payments. Pieces of crap. How do I know? I am one of the guys you call when you are stuck on the side of the road. I’ve worked on many and all of these cars are over complicated nonsense and badly designed motor wise because they burn so much damn oil or something flys apart that never used to. For what? Max profit.
Nuts. I highly doubt I’ll ever buy a new car, the prices are absurd
I remember last year repossessions were as high as the pandemic. Lots of articles assured it wouldn’t be the same in 2026.
If you can’t afford a car it’s going to be tough to afford a house.
And china’s cars are both better and cheaper than ours. But we aren’t allowed to buy them.
“free market” lol