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Why one of the nation's largest auto lenders isn't worried about high vehicle prices or 'forever loans'

Cnbc · · 711 words · By Michael Wayland
open_in_new Read the original article: https://www.cnbc.com/2026/05/09/capital-one-auto-forever-loans-used-cars.html

fact_checkFact-Check Results

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

info Single Source 6
check_circle Corroborated 3
schedule Pending 2
help Insufficient Evidence 1
info
“Capital One reports median monthly car ownership payments have jumped from $390 to $525 since 2019”
SINGLE SOURCE
The provided web search results for Capital One are generic landing pages or general articles about car ownership costs; none of the sources mention the specific figures of $390 or $525.
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web search NEUTRAL — Explore Capital One accounts for you and your business - including credit cards, checking accounts, savings accounts, auto loans and more.
https://www.capitalone.com/
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web search NEUTRAL — ‘It’s Just Crazy’: High Car Payments Make Ownership Feel Impossible. Rising vehicle prices, auto loan interest rates, and insurance and maintenance costs are making it harder for people to buy or keep…
https://www.nytimes.com/2026/03/16/business/car-ownership-pr…
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web search NEUTRAL — With online banking, you have safe and secure access to your Capital One account. You can also view transactions, check your balance and payment due date, sign up for alerts and more.
https://www.capitalone.ca/sign-in/
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“the payment-to-income ratio has remained flat at approximately 10% since 2019, according to the automotive arm of the American bank [Capital One]”
SINGLE SOURCE
While one search result mentions a 10% down payment and general income ratios, it does not confirm that the payment-to-income ratio has remained flat at 10% since 2019 according to Capital One.
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web search NEUTRAL — It also factors in a 10% down payment plus interest and assumes a 72-month term for financing. From 2012-2019, an American household earning the median income could purchase a new vehicle with the equ…
https://www.thegeneral.com/going-places/blog/car-and-driving…
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web search NEUTRAL — Payments & maturity Car financing payments and amount financed in the U.S. 2025 Average financing amount of new and used vehicles 2015-2025
https://www.statista.com/topics/5559/car-financing-and-leasi…
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web search NEUTRAL — Amid surging prices and higher loan rates, paying for a new car costs more than ever—and owning a home and a new car now eats almost half of the typical American's budget.
https://www.investopedia.com/amid-surging-prices-loan-rates-…
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“Capital One Auto found 80% of car purchasers who finance a vehicle are below the generally recognized payment to income threshold of 15%.”
SINGLE SOURCE
The search results returned are completely irrelevant (lists of 80s songs) and do not contain any financial data from Capital One Auto.
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web search NEUTRAL — Nov 23, 2023 · So let’s break it down: the 200 best songs of the Eighties, music’s most insane decade. The hits, the deep cuts, the fan favorites. A mix tape of pop classics, rockers, rappers, soul di…
https://www.rollingstone.com/music/music-lists/best-80s-song…
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web search NEUTRAL — Find A New Podcast To Binge! Calming Music To Relax Your Pets! The podcast totally devoted to the greatest decade ever – the 80s! Join host Lyndsey Parker (Yahoo Entertainment Music Editor) and specia…
https://www.iheart.com/live/iheart80s-5060/
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web search NEUTRAL — Listen to the 80s Hits | Top 100 Songs playlist by Filtr on Apple Music. 110 Songs. Duration: 7 hours 48 minutes.
https://music.apple.com/us/playlist/80s-hits-top-100-songs/p…
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“Edmunds reports roughly 26% of used vehicles purchased that involved a trade-in vehicle had negative equity this year through April.”
SINGLE SOURCE
The search results provided are dictionary definitions of the word 'approximately' and do not contain any data from Edmunds regarding negative equity percentages.
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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
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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…
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web search NEUTRAL — Definition of approximately adverb in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.
https://www.oxfordlearnersdictionaries.com/definition/englis…
info
“The amount of negative equity averaged $5,105, a 35% increase from 2019.”
SINGLE SOURCE
Search results mention that negative equity is a pain point and that some buyers financed nearly $56,000, but they do not provide the specific average of $5,105 or the 35% increase from 2019.
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web search NEUTRAL — Negative equity is vastly becoming a major pain point in the auto market, with more than 3 in 10 trade-ins now carrying upside-down loans, according to Edmunds.As those vehicles re-enter the trade cyc…
https://www.cbtnews.com/edmunds-q1-negative-equity-trade-ins…
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web search NEUTRAL — Used Ioniq 5s now sell for under $20,000. Nationwide, nearly one in three trade-ins is underwater.Negative-equity buyers financed an average of nearly $56,000 in the first quarter, roughly $12,000 abo…
https://www.torquenews.com/17998/used-ioniq-5s-drop-below-20…
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web search NEUTRAL — Return On Equity or ROE is a financial ratio that can help you analyze the performance of a company or business unit from the persp...
https://www.youtube.com/watch?v=6fA5N4giHrM
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“Regarding financing for new vehicles during the first quarter, 90.2% of new vehicle loans involving trade-ins with negative equity carried terms of at least 72 months”
CORROBORATED
Two independent sources explicitly state that 90.2% of consumers with negative equity are extending terms to 72 months or longer.
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web search NEUTRAL — 90.2% of consumers taking out new loans carrying negative equity are extending terms to 72 months or longer, and 43% are entering 84-month loan agreements.
https://news.dealershipguy.com/p/negative-equity-nears-recor…
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web search NEUTRAL — As those vehicles re-enter the trade cycle, Edmunds data show the average negative equity sits at about $7,200. Caldwell said that shortfall is often rolled directly into new auto loans, which increas…
https://www.cbtnews.com/edmunds-q1-negative-equity-trade-ins…
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web search NEUTRAL — Negative equity trade-ins are on the rise due to lenders extending loan terms past 72 months, Ivan Drury, senior analyst at Edmunds.com, told Auto Finance News. Around 45% of consumers trade in their …
https://www.autofinancenews.net/allposts/capital-funding/lon…
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“43% extended to 84 months, according to Caldwell [Edmunds].”
CORROBORATED
Two independent sources explicitly state that 43% of these loans are entering 84-month agreements.
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web search NEUTRAL — A new report from Edmunds shows that the average negative equity recorded in Q1 was the second-highest for any quarter. What we know: The negative equity is being brought to the negotiating table on t…
https://news.dealershipguy.com/p/negative-equity-nears-recor…
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web search NEUTRAL — 84-month car loans are becoming the norm, but they come with a hefty price. Discover how these extended terms trap buyers in negative equity and cost thousands more in interest over the long run.
https://www.autoblog.com/news/the-rise-of-84-month-car-loans
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web search NEUTRAL — The average amount financed for new vehicles climbed to a record high of $43,899 in Q1 2026, compared to $43,759 in Q4 2025 and $41,473 in Q1 2025. Monthly payments for new vehicles reached a new all-…
https://www.resetera.com/threads/84-month-or-longer-loans-ma…
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“The average negative equity trade-in was $7,183 during the quarter for new vehicles, according to Edmunds.”
CORROBORATED
Multiple sources confirm the average negative equity for new vehicle trade-ins in Q1 was $7,183.
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web search NEUTRAL — A new report from Edmunds shows that the average negative equity recorded in Q1 was the second-highest for any quarter. What we know: The negative equity is being brought to the negotiating table on t…
https://news.dealershipguy.com/p/negative-equity-nears-recor…
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web search NEUTRAL — Consumers rolling average of $7,183 in negative equity into new loans. New data shows over 30% of trade-ins toward new vehicle purchases carried negative equity in the first quarter of 2026. Susan Cam…
https://www.kold.com/2026/04/21/nearly-one-third-car-shopper…
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web search NEUTRAL — With rising vehicle prices and a shift toward longer loan terms, more customers are saddled with higher negative equity. As new-vehicle prices increase and interest rates stay high, the average auto c…
https://www.autofinancenews.net/allposts/risk-management/ave…
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“Sanjiv Yajnik... has led the automotive lending division since 2008.”
INSUFFICIENT EVIDENCE
No evidence was found in the provided search results to confirm Sanjiv Yajnik's tenure or role.
info
“The average listed price of a used vehicle was $25,390 in March, according to Cox's most recent data.”
SINGLE SOURCE
The claim is supported by a single cross-reference to CNBC citing Cox Automotive, but no other independent sources were provided to corroborate the specific figure of $25,390.
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cross reference SUPPORTS — The average listed price of a used vehicle was $25,390 as of March, according to Cox
https://www.cnbc.com/2026/05/07/used-car-prices-gas.html
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“That compares to new vehicles... at $48,667.”
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“Cox Automotive reports if all other things are equal on a loan, financing for a $30,000 vehicle at a 9% annual percentage rate would cost $3,100 more on an 84-month term than a 48-month loan.”
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.