Yahoo Finance
I haven't met many people who were actually able to afford a new car.
Sure, plenty buy them, but suffocating monthly loan payments mean the "affording" part isn't exactly met.
For decades, we shrugged off the warning that a new car loses 10% of its value the second it leaves the lot.
The counter-argument was simple: You paid for peace of mind and the guarantee you wouldn't end up stranded on the road.
But today, even buying aused caris a crushing mathematical problem.
According toEdmunds,the average monthly new-car payment has hit a record $777, and20.3%of buyers pay$1,000 or moremonthly.
To cope, many stretch loans over six or seven years.
Edmunds' Ivan Drury calls this a "mathematical trap," warning that pairing a 7.0% APR with an 84-month loan means handing over nearly $10,000 in interest alone, leaving buyers "highly vulnerable to falling underwater." Used-car buyers are squeezed just as hard, financing an average of$30,414at10.5%interest.
For subprime buyers,Experiandata show interest rates averaging a staggering19.4% to 21.7%.
It is also hitting the dealerships that specialize in financing customers with weaker credit.
Now, one of the largest chains in the country has dramatically reduced its footprint.
A major automotive retailer that operates a chain of used-car dealerships, America's Car-Martreportedon July 14, 2026, its fourth-quarter and full-year results for the period ended April 30, 2026.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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