Car Payments Now Average More Than $750 a Month. Enter the 100-Month Car Loan.

The Wall Street JournalTuesday, December 23, 2025 at 10:30:00 AM
Car Payments Now Average More Than $750 a Month. Enter the 100-Month Car Loan.
  • The average monthly car payment in the U.S. has surpassed $750, driven by a 33% increase in new car prices since 2020, leading consumers to extend loan terms to nearly 100 months. This trend reflects a significant shift in consumer financing behavior amid rising costs.
  • The rising average payment and extended loan terms indicate a growing financial strain on consumers, as they are compelled to take on longer debt commitments to afford vehicles. This situation raises concerns about the sustainability of such financial practices.
  • As consumer confidence declines and households express a more negative outlook on the economy, the automotive market faces challenges, including declining sales for companies like CarMax, which has resorted to price cuts to attract buyers back into the market.
— via World Pulse Now AI Editorial System

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