American families are being crushed under a tidal wave of automotive debt, driven by record-high new car payments and predatory lending practices. The average monthly payment for a new vehicle has skyrocketed to a staggering $748, a crushing 35% increase since 2019. This crisis is fueled by inflation, supply chain failures, and high interest rates, forcing desperate buyers into extreme financing options—including “predatory” 100-month loans—that guarantee financial servitude for nearly a decade while vehicles rapidly depreciate.
Story Snapshot
- New car payments reached $748 monthly in Q3 2025, up from $554 in 2019
- Buyers trapped in 69-month average terms with 6.56% interest rates on $42,332 vehicles
- Used car buyers face “disgusting” 11.4% interest rates despite lower $532 payments
- Credit score determines financial burden, with subprime borrowers paying $793 monthly
Biden’s Economic Legacy Crushes Car Buyers
The latest Experian data reveals the devastating impact of years of failed economic policies on American families. Average new car payments climbed to $748 in Q3 2025, representing a crushing 35% increase from the $554 payments families enjoyed in Q4 2019. This astronomical rise stems directly from pandemic-era supply chain disasters, reckless government spending that fueled inflation, and Federal Reserve policies that pushed interest rates through the roof while hardworking Americans watched their purchasing power evaporate.
The numbers paint a grim picture of financial servitude. With transaction prices averaging $42,332 and interest rates at 6.56%, families are financing 81% of new vehicle purchases over an average 69-month period. This represents a dramatic shift from pre-pandemic norms when car payments hovered around $500-550, demonstrating how liberal economic mismanagement has permanently damaged American affordability standards.
The average monthly car payment in the U.S. is now $750 a month!
One problem is car prices -> there's basically nothing available under $30,000.
Result: the birth of the 100-month car loan… pic.twitter.com/RD8wwXz4XQ
— Leo (@LeoNelissen) December 23, 2025
Predatory Lending Traps Vulnerable Families
The emergence of 100-month car loans represents a new low in predatory lending practices targeting cash-strapped Americans. While current averages show 69-month terms, desperate lenders are pushing extended financing options that stretch nearly a decade to artificially lower monthly payments. These schemes trap families in perpetual debt cycles where they’ll pay thousands more in interest while their vehicles depreciate 20-30% in the first year alone.
Credit score discrimination reveals the two-tiered financial system punishing working-class Americans. Super-prime borrowers with scores of 781-850 secure $727 monthly payments, while subprime borrowers face $793 despite representing higher risk to lenders. Deep subprime borrowers somehow receive better treatment at $748, exposing the arbitrary nature of these predatory practices that exploit financial desperation.
Owning a car isn’t just about freedom, it’s essential for most Americans to get the job they need. Horrific policies over during Biden years raised car prices 33%, driving the average monthly payment to $750. In 2025, we reversed those policies, but we must and will do more. pic.twitter.com/XB6OTX9UY2
— Bernie Moreno (@berniemoreno) December 23, 2025
Used Car Market Becomes Debt Nightmare
The used car market offers little relief, with average payments reaching $532 monthly on $27,128 vehicles financed at an unconscionable 11.4% interest rate over 67 months. These “disgusting” rates, as critics accurately describe them, demonstrate how lenders are gouging families who cannot afford new vehicles. Only 35% of used car buyers require financing compared to 81% for new cars, yet those forced into loans face interest rates nearly double those of new car buyers.
The data exposes how inflation and supply chain failures permanently altered the automotive landscape. Where families once found affordable transportation in the used market, they now encounter payment burdens that consume significant portions of household budgets. This represents a fundamental attack on economic mobility, forcing families to choose between transportation access and financial stability in ways that would have been unthinkable just five years ago.
Watch: $100/Month Extra To Your Mortgage – YouTube
Sources:
The Average New Car Payment Has Reached Almost $750 a Month
Average New Car Payments Are Closing in on $750 a Month
The Average New Car Payment Was Nearly $750 A Month In Q3 Of 2025
Average Car Payment and Auto Loan Statistics: 2025 | LendingTree
