Car payments squeeze Americans as auto debt hits $1.68 trillion, report finds

Fuel prices are displayed on a sign as a customer fills their vehicle at a gas station on April 13, 2026 in Miami, Florida. Joe Raedle | Auto debt is becoming a bigger problem for consumers , a new report shows. Total auto debt reached $1.68 trillion at the end of 2025 — a 37% increase since late 2018, when the debt was at $1.23 trillion, according to a new analysis by The Century Foundation, a left-leaning think tank, and Protect Borrowers, a consumer advocacy group, provided exclusively to CNBC. That figure includes traditional installment loans and leases. Nearly 86 million Americans — about 1 in 4 — carry outstanding auto loan or lease debt, the organizations calculated. The average origination balance for an auto loan was $33,519 at the end of 2025, compared with $24,782 in the fourth quarter of 2018, the research shows. Over that same period, the typical monthly auto loan payment increased to more than $680 from $506. "People are seeing more and more of their paychecks eaten by their car payments," said Angela Hanks, chief of policy programs at The Century Foundation. The surge in auto debt comes as Americans face more expensive vehicles and higher interest rates, a combination that can force them to choose between higher monthly payments and longer repayment terms. Ownership costs can present additional affordability challenges. Gas prices have increased due to the war with Iran, with an nationwide average price per gallon of $4.53 as of Wednesday, according to AAA. …