Story perspectives

Car Costs Soar: Households Face Financial Strain

9/21/2025

26 4

Summary

Story summary

American households are struggling with rising car and insurance costs, with car loans totaling $1.66 trillion, exceeding student debt.
Missed car payments are rising, echoing patterns seen before the 2008 Great Recession, raising economic concerns.
The average new car costs $49,856, with monthly payments at $745 and insurance averaging $194.
Longer loan terms increase overall costs due to interest.
Experts suggest the "20-4-10" rule to help manage car expenses.

1 of 1

Story summary

American households are struggling with rising car and insurance costs, with car loans totaling $1.66 trillion, exceeding student debt.
Missed car payments are rising, echoing patterns seen before the 2008 Great Recession, raising economic concerns.
The average new car costs $49,856, with monthly payments at $745 and insurance averaging $194.
Longer loan terms increase overall costs due to interest.
Experts suggest the "20-4-10" rule to help manage car expenses.