America’s love affair with cars has turned into a debt crisis. As of the third quarter of 2025, U.S. households collectively carried $1.66 trillion in auto loan debt, according to the Federal Reserve Bank of New York (1). That’s more than outstanding student loans combined and makes auto loans the largest source of nonhousing debt for American consumers. Must Read But the sheer size of the debt isn’t the only problem. The burden is also growing fast. Over the past decade, the nation’s total auto loan ...