The COVID Car Bubble Just Trapped Millions of Americans

Added: 2026-05-06

[00:00:00]30% of Americans owe more on their car than it's actually worth. The pandemic car bubble has finally burst and millions are trapped. During COVID, a chip shortage made cars nearly impossible to find. Prices exploded.

[00:00:15]Dealers charged way above sticker price and people paid it. Now those overpriced cars have lost value, but the loans haven't. One buyer owed 87,000 on a truck now worth only 47.

[00:00:29]On average, buyers are $7,200 underwater before even buying a new car.

[00:00:35]To cope, people are stretching loans to 70 months, some over eight years.

[00:00:40]Monthly payments hit $932, an all-time record. Underwater buyers are twice as likely to get their car repossessed within 2 years. Auto loan defaults just hit the highest level since 2010. Are you underwater on your car loan? Drop your story in the comments.