The Car Payment Situation Just Spiraled to New Unsustainable Levels (Video)

In this 11 May 2026 published video, host Michael Bordenaro talks about how the car payment situation in the United States has reached a critical “breaking point” in 2026, with total auto debt hitting a record $1.68 trillion. A combination of record-high vehicle prices, rising interest rates, and extreme levels of negative equity has created what analysts describe as an “unsustainable” financial burden for many households.
To keep monthly payments manageable, lenders are offering increasingly long terms. Loans of 84 months or longer reached an all-time high of 22.9 percent of all new-car purchases in Q1 2026. Experts from Kelley Blue Book recommend keeping payments below 10% of take-home pay, meaning a household would need an annual income exceeding $90,000 to comfortably afford the average new car payment.
https://youtu.be/gXGB8S4m4yI
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