U.S. Auto Debt Reaches $1.68 Trillion, Overtaking Credit Cards

With the average new car transaction price holding just below $50,000 last month, it’s not surprising that auto debt has ballooned to previously unseen levels. As more people borrow larger sums of money to be able to buy or lease a vehicle, auto debt is increasingly becoming a serious problem for consumers.A new report shows that total auto debt reached $1.68 trillion at the end of 2025 in the United States, accounting for a 37% increase since late 2018, when the debt was at $1.23 trillion. The staggering figure is higher than credit card debt ($1.28 trillion) and is closing in on federal student loan levels.The total debt figure includes traditional installment loans and leases, according to an analysis by The Century Foundation, a left-leaning think tank, and Protect Borrowers, a consumer advocacy group, provided exclusively to CNBC.The Average U.S. Borrower Carries $33,519 in Auto Loan Debt
…