LOAN LENGTHENING
10/08/2026 |
In 2015, the share of car loans that had a term of 72+ months was 15%. By Covid’s arrival the percentage was 20%. By 2022 it had risen to 25%, where the rate stayed through 2025. However, it’s again rising and now exceeds 30%. This is being driven by rising car prices, rising rates, downpayments that aren’t keeping pace, and higher frequency of negative equity. It’s different dimensions of unaffordability.