41% of Trade-Ins Extend Debt with New 7-Year Auto Loans

As financial pressures mount in 2026, “affordability” emerges as the driving concern for many Americans. The rising costs of child care, health care, and housing are significantly impacting personal budgets. Consequently, one area of increased financial strain is the cost of auto ownership.

Rising Auto Loan Durations Due to Debt Concerns

To manage tighter budgets, more borrowers are choosing longer auto loan terms. Many are opting for seven-year loans or even longer. This trend is primarily driven by the need to keep monthly payments within reach while maintaining vehicle ownership.

Key Trends in Auto Financing

• Longer loan terms are becoming a common practice.
• Borrowers are rolling over existing debt into new loans.
• The average length of auto loans is extending significantly.

As affordability remains a key concern, lenders and borrowers alike must navigate the complex auto financing landscape. The economic realities demand careful consideration of monthly budgets and financing options.