This infographic from a car payment calculator guides readers through the recent alarming rise in automotive debt to total nearly 1.2 trillion dollars. Many factors led to this problem. Median vehicle prices have increased by over four thousand dollars in the past for years.
To make monthly payments more manageable some buyers have extended their loan terms out from around five years to seven years. Making matters worse, nearly one in three buyers which uses a trade-in ends up owing more on the trade-in than the vehicle was worth, adding additional debt to their new auto loan.