In this 21 August 2026 published video, host Brandon, a used car dealer talks about how Americans are defaulting on their bills. They face a severe auto loan crunch as total national car debt hits $1.71 trillion. Subprime 60-day delinquency rates have climbed past 6.9 percent—the worst level in over 30 years. Surging defaults are driven by average monthly payments topping $680, inflated vehicle prices, and high interest rates.
I created Car Questions Answered to share the ins and outs of the used car market from my perspective. I share with you updates on car prices, what’s happening at the dealer auctions, and what it’s like being a dealer. My goal is to share information to help you make the best decisions while buying a car to save you money. I do not want car dealers taking advantage of you.
Americans face a severe auto loan crunch as total national car debt hits $1.71 trillion. Subprime 60-day delinquency rates have climbed past 6.9 percent—the worst level in over 30 years. Surging defaults are driven by average monthly payments topping $680, inflated vehicle prices, and high interest rates.
Car prices jumped roughly 30 percent compared to pre-2019 levels, pushing average new car tags past $50,000. Nearly 20 percent of buyers carry monthly car payments exceeding $1,000, forcing families to cut back on groceries, rent, and savings. Then there are the higher interest rates which average near 7 percent for new cars and 11 percent for used vehicles and make financing significantly more expensive. Buyers rely on 72- to 84-month loan terms to lower monthly payments, increasing the risk of being “upside down” (owing more than the car is worth).
U.S. household debt has hit an all-time high of $18.8 trillion, with serious credit card delinquencies (90+ days past due) climbing to roughly 13 percent—the highest level in about 16 years. High inflation, elevated borrowing costs, and the expiration of pandemic-era safety nets are forcing millions to fall behind on daily bills.
Outstanding balances hover near a record $1.26 trillion, with roughly 111 million Americans carrying revolving debt they cannot clear each month. Student loan delinquencies have surged past 10 percent as post-pandemic repayment rules take full effect, leaving roughly 1 in 5 federal borrowers behind. Millions of households report falling behind on routine utility payments and auto loans as price increases outpace wage growth
Late fees and penalty APRs (often exceeding 20% on credit cards) quickly compound the original balance, turning minor cash-flow gaps into multi-year traps. Delinquencies past 90 days trigger severe credit score drops, raising future costs for insurance, housing, and any necessary borrowing. An increasing number of stressed borrowers resort to early withdrawals or hardship loans from 401(k) accounts, permanently hurting their long-term security
