Edmunds: 7 year loans make up 20% of new car financing.

[Adam W]

There are some astounding numbers in this new report from Edmunds. Borrowers are adding nearly $10k to their vehicle price by choosing longer loan terms and higher interest rates above 7%.

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"When one in five new-car buyers are taking on seven-year loans, it’s clear how many consumers are still financially stretched. Even with rates holding relatively flat, the continued reliance on extended terms and high monthly payments reveals how challenging car buying remains. And now, with auto tariffs officially taking effect today, there’s a risk that they will add fuel to the fire​

Slate was smart to start their reveal announcement with a discussion about payments and affordability. I bet most consumers just think they're paying off the purchase price over time without really understanding how much additional cost they're adding with these kinds of loans.

USA Today summary
Full Edmunds report

 

[lgerger]

There are some astounding numbers in this new report from Edmunds.

Yup. That tells me people are foolishly overextending themselves and buying things they can't afford. The loan companies/banks are laughing all the way to the...well, bank.