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National News See other National News Articles Title: Auto loan debt hits $1.63T. 20% of buyers now pay $1,000+ monthly. Texas delinquency hits 7.92%. In the second quarter of 2025, the auto finance market crossed a threshold that’s hard to ignore. Total auto loan debt in the United States has now reached $1.63 trillion, officially surpassing the student loan balance for the first time. According to Edmunds, 19.3% of new car buyers committed to monthly payments of $1,000 or more in Q2, up from 17.7% in Q1 and 17.8% in Q2 last year. The average amount financed hit $42,388, another record. Interest rates remain elevated, with the average APR for new vehicles at 7.2%. Buyers are stretching terms to make payments work, with 22.4% of new loans now running 84 months or longer. Texas stands out. The state’s average auto loan balance is $7,920, the highest in the country. Delinquency rates there reached 7.92% in Q2, well above the national average. Dealers in the region report frozen inventory and failed trade-ins, with some buyers unable to roll over negative equity. The average monthly payment in Texas is $867, nearly 15.5% above the national average. Subprime borrowers are feeling the squeeze, and asset-backed securities tied to auto loans are quietly showing signs of stress. ABS losses are building, but not yet triggering alarms. Lenders are watching the data closely. See also Three GOP heavyweights retire while Cornyn fights for survival in brutal Texas primary The average down payment for new cars dropped to $6,433 in Q2, down from $6,579 a year ago. Only 0.9% of new loans carried 0% interest, the lowest share since 2004. Buyers are financing more, putting less down, and locking in longer terms. The average loan duration for new cars is now 69.8 months. Used car loans are also stretched, with an average term of 69.7 months and APRs hovering around 10.9%. The average amount financed for used vehicles reached $29,080. with sales down 25% and buyers returning only where prices crash Dealers are reporting trade-in failures at scale. Vehicles with underwater loans are being rejected or repriced, and inventory turnover is slowing. Some lots are holding cars longer than expected, waiting for financing approvals that never come. The ripple effect is hitting auctions and wholesale pricing. Lenders are adjusting risk models, and some are tightening criteria for 84-month terms. This isn’t just about affordability. It’s about structural exposure. When 1 in 5 buyers is committing to $1,000 payments and nearly a quarter of loans stretch past 7 years, the system is leaning hard on future income stability. If rates rise or job markets soften, the unwind could be sharp. For now, the numbers are holding, but the pressure is visible. Sources https://www.edmunds.com/industry/press/a-record-1-in-5-new-car-shoppers- committed-to-a-1000-monthly-payment-in-q2-2025-according-to-edmunds.html https://fordauthority.com/2025/07/average-monthly-car-payments- exceeding-1000-hits-new-record-in-q2/ https://www.bankrate.com/loans/auto-loans/states-with-highest-car-loan- balance/ https://www.autoremarketing.com/subprime/edmunds-spots-multiple-new-all- time-highs-for-new-car-financing-in-q2/ https://www.autoblog.com/news/the-rise-of-84-month-car-loans https://contrarianunicus.substack.com/p/the-auto-loan-breakdown- 1000month Poster Comment: Smotrich and Ben-Gvir denounce emerging ceasefire deal being pushed by POTUS Trump https://theuglytruth.xyz/smotrich-and-ben-gvir-denounce-emerging-ceasefire-deal- being-pushed-by-potus-trump/ Post Comment Private Reply Ignore Thread
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