Here’s another good article on the #subprime problem facing US car loans today.

Car owners are increasingly underwater (i.e. they owe more on their car than the car is worth). As a result, some people are driving their cars longer (not bad), but some are rolling their debt over into new debt as they buy newer cars and extending their loan terms to manage their monthly payments (very bad).

In 2026, more than 30% of issued car loans are MORE THAN TWELVE YEARS LONG. This is clearly unsustainable. Do these loans even have a chance of outpacing a car’s depreciation? Even comprehensive insurance won’t cover the outstanding balance of the loan if the car were totaled.

This is heading into very bad territory.

#cars #economy

https://www.breakingviews.com/columns/big-view/17-trln-auto-loan-market-heads-crash-2026-10-13/