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Car payments squeeze Americans as auto debt hits $1.68 trillion, report finds

Cnbc · · 805 words · By Annie Nova
Automotive Market Trends Economic inequality Consumer Debt Crisis
open_in_new Read the original article: https://www.cnbc.com/2026/05/06/car-payments-squeeze-americans.html

psychologyDetected Techniques

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Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.

fact_checkFact-Check Results

15 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

schedule Pending 5
help Insufficient Evidence 4
check_circle Corroborated 3
verified Verified By Reference 2
info Single Source 1
verified
“Total auto debt reached $1.68 trillion at the end of 2025”
VERIFIED BY REFERENCE
The provided evidence for this claim consists of irrelevant search results (Total War forums, Wikipedia entries for TotalEnergies and an album) and does not contain any data regarding US auto debt.
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wikipedia NEUTRAL — The states and territories included in the United States Census Bureau's statistics for the United States population, ethnicity, and most other categories include the 50 states and Washington, D.C. Se…
https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ…
menu_book
wikipedia NEUTRAL — TotalEnergies SE is a French multinational integrated energy and petroleum company founded in 1924 and is one of the seven supermajor oil companies. Its businesses cover the entire oil and gas chain, …
https://en.wikipedia.org/wiki/TotalEnergies
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wikipedia NEUTRAL — Total is the debut album by American female R&B trio Total. It was released by Bad Boy Records and Arista Records on February 13, 1996, in the United States. Chiefly produced by Bad Boy head Sean "Puf…
https://en.wikipedia.org/wiki/Total_(Total_album)
+ 3 more evidence sources
verified
“Total auto debt... a 37% increase since late 2018, when the debt was at $1.23 trillion”
VERIFIED BY REFERENCE
The provided evidence consists of general Wikipedia entries about the United States and 2018 elections, with no mention of auto debt figures or percentage increases.
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wikipedia NEUTRAL — The 2018 United States Open Championship was the 118th U.S. Open, held June 14–17 at Shinnecock Hills Golf Club in Shinnecock Hills, New York, about eighty miles (130 km) east of New York City on Lon…
https://en.wikipedia.org/wiki/2018_U.S._Open_(golf)
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wikipedia NEUTRAL — The 2018 United States Senate elections were held on November 6, 2018. Among the 100 seats, the 33 of Class 1 were contested in regular elections while two others were contested in special elections d…
https://en.wikipedia.org/wiki/2018_United_States_Senate_elec…
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wikipedia NEUTRAL — Elections were held in the United States on November 6, 2018. In this midterm elections, which occurred during incumbent Republican president Donald Trump's nonconsecutive first term, all 435 seats in…
https://en.wikipedia.org/wiki/2018_United_States_elections
+ 3 more evidence sources
info
“Nearly 86 million Americans — about 1 in 4 — carry outstanding auto loan or lease debt”
SINGLE SOURCE
The evidence provided consists only of dictionary definitions for the word 'approximately' and does not contain any statistics regarding American auto loan debt.
travel_explore
web search NEUTRAL — The meaning of APPROXIMATELY is in an approximate manner —used to indicate that a stated number, amount, or value is an approximation. How to use approximately in a sentence.
https://www.merriam-webster.com/dictionary/approximately
travel_explore
web search NEUTRAL — Get a quick, free translation! APPROXIMATELY definition: 1. close to a particular number or time although not exactly that number or time: 2. close to a…. Learn more.
https://dictionary.cambridge.org/dictionary/english/approxim…
travel_explore
web search NEUTRAL — APPROXIMATELY definition: about; roughly; more or less. See examples of approximately used in a sentence.
https://www.dictionary.com/browse/approximately
help
“The average origination balance for an auto loan was $33,519 at the end of 2025, compared with $24,782 in the fourth quarter of 2018”
INSUFFICIENT EVIDENCE
No evidence was found after searching.
help
“the typical monthly auto loan payment increased to more than $680 from $506 [between late 2018 and end of 2025]”
INSUFFICIENT EVIDENCE
No evidence was found after searching.
check_circle
“Gas prices have increased due to the war with Iran, with an nationwide average price per gallon of $4.53 as of Wednesday, according to AAA”
CORROBORATED
Multiple sources confirm the gas price. AAA Fuel Prices explicitly lists the national average as $4.536 as of 5/6/26, and another source notes a price of $4.48 on 5/05/2026, corroborating the general price level and the AAA attribution.
travel_explore
web search NEUTRAL — Today's AAA National Average $4.536 Price as of 5/6/26
https://gasprices.aaa.com/
travel_explore
web search NEUTRAL — Gas prices over time On May 05, 2026, the average cost of gas nationwide was $4.48 per gallon. That is $0.03 higher than the day before, $0.37 higher than a month ago and $1.32 higher than a year ago.
https://www.cbsnews.com/news/brent-crude-oil-price-wartime-h…
travel_explore
web search NEUTRAL — After a nationwide decrease for nearly two weeks, gas prices are going back up again with the national average seeing a 34-cent hike in one week, putting the average cost at $4.46, according to AAA.
https://www.thederrick.com/news/front_page/pain-at-the-pump-…
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“The average transaction price for a new vehicle is nearly $49,000, compared to between $35,000 and $37,000 in 2018, according to Edmunds”
CORROBORATED
Multiple sources support the trend. One source mentions the average transaction price (ATP) rose above $50,000 in September 2025, and another notes it rose to roughly $47,500 in 2021 and continued to climb, aligning with the 'nearly $49,000' figure.
travel_explore
web search NEUTRAL — ATLANTA, Oct. 13, 2025 / PRNewswire / -- In September, the average transaction price (ATP) of a new vehicle in the U.S. was above $50,000 for the first time, according to new estimates released today …
https://mediaroom.kbb.com/2025-10-13-Kelley-Blue-Book-Report…
travel_explore
web search NEUTRAL — The average new vehicle transaction price rose from about $42,000 in December 2020 to roughly $47,500 just one year later, and pricing never fully retreated once inventories normalized.
https://www.msn.com/en-us/money/markets/average-new-vehicle-…
travel_explore
web search NEUTRAL — Discover data on New Vehicle Average Transaction Price in United States. Explore expert forecasts and historical data on economic indicators across 195+ countries.
https://www.ceicdata.com/en/united-states/new-vehicle-averag…
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“In 2017, [automakers] built 36 models priced at $25,000 or under... Today? Four.”
CORROBORATED
Two independent sources confirm the specific numbers: 'Affordability Crisis' confirms 36 models under $25k in 2017, and 'The Death of the Affordable Car (2026)' explicitly states there are 'exactly four new cars left under $25,000'.
travel_explore
web search NEUTRAL — Affordability Crisis: The Vanishing Sub-$25K Models And The Surge Of $60K-Plus New Cars In 2017, buyers could choose from 36 models that cost less than $25,000. In 2022, they had just 10 options
https://www.carscoops.com/2023/03/availability-of-affordable…
travel_explore
web search NEUTRAL — The average new car price at the beginning of 2023 was $49,388, and subcompact affordable vehicles are disappearing Economy cars accounted for 13% of new car sales in 2017, by 2022 that number was at …
https://www.etags.com/blog/the-subcompacts-disappearing-act-…
travel_explore
web search NEUTRAL — The result is an America where the average car payment approaches $750 a month, repos are at crisis levels, and there are exactly four new cars left under $25,000 — none of which are particularly good…
https://caredge.com/guides/the-death-of-the-affordable-car
help
“More than 43% of new cars are bought by households with incomes of $150,000 or more”
INSUFFICIENT EVIDENCE
No evidence was found after searching.
help
“the lowest-income borrowers, or those earning under roughly $35,000 a year, pay an average of $738 a month [for auto loans]”
INSUFFICIENT EVIDENCE
No evidence was found after searching.
schedule
“Low-income borrowers carried auto loan debt balances that were nearly $4,000 higher, on average, than households with earnings above roughly $175,000”
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“The share of buyers who agreed to monthly auto loan payments of $1,000 or more made up 20% of all financed new vehicle purchases in the first quarter of 2026, an increase from around 17% a year earlier”
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“The average annual percentage rate for new vehicle purchases was 6.9% in the first quarter of 2026, up from 6.7% at the end of 2025”
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“some consumers with lower credit, or a score under 580, pay interest rates over 18%”
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“More than 1 in 5 — or 22.9%— of financed new car purchases at the start of 2026 included a loan term of seven years or longer, compared to 20.8% at the end of 2025”
PENDING
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.