Podcast Summary: Your Money Minute

Episode: "8 Year Car Loans Oh My"
Host: Jessica Ettinger (CNBC)
Release Date: December 31, 2025
Length: ~60 seconds

Episode Overview

This rapid-fire episode of Your Money Minute tackles the growing trend of ultra-long car loans, including seven- and eight-year terms. With new car prices and monthly payments reaching record highs, host Jessica Ettinger and featured CNBC colleagues discuss how both buyers and dealers are adapting—and what consumers should watch out for.

Key Discussion Points & Insights

1. Many Hesitate to Buy New Cars

• Car Buyers Are Holding Back:
  Jessica opens by highlighting current consumer hesitation ("A lot of would-be car buyers are waiting." [00:03]).
• Media Headlines Reflect This Shift:
  Carl Quintanilla recounts how recent news headlines, “Page one of the Detroit Free Press, buyers stay away from lots. Page one of the Journal. Car buyers balk after years of prices going up.” [00:08-00:16], underscore buyer reluctance since vehicle prices have climbed steadily.

2. Dealers’ Response: Stretching Out Loan Terms

• Lower Monthly Payments by Lengthening Loans:
  Jessica explains, "So how does a car dealer get a customer into a brand new car when the monthly payment is just too high? Well, you lower the payment by stretching out that loan." [00:16-00:29]
• The Eight-Year Loan Emerges:
  Phil LeBeau notes a new trend: "You are starting to hear people talk about eight year...lot of loans." [00:29-00:33]
  Jessica reaffirms, “Here come eight year car loans.” [00:33]

3. The Focus Remains on Monthly Payments

• Consumer Mindset:
  Phil LeBeau observes, "All that matters to most people is the monthly payment. That at the end of the day is what people buy vehicles on. They don't go out and they say, oh, I'm going to spend $50,000. They go out and they say how much can I afford every month?" [00:33-00:49]
• Current Payment Stats:
  The average new vehicle payment is "just over $750 on average." [00:49-00:57]
  Jessica questions, "And who has an extra $750 a month?" [00:57]

4. Seven-Year Loans Are Becoming the Norm

• Longer Loans on the Rise:
  “So 7 year car loans are becoming very common,” Jessica says [00:57-01:03]
• How Buyers Compensate:
  Phil elaborates, "How are people getting to that or keeping it close to 750? They're stretching out their loans. It's not uncommon now to find somebody who is taking out a seven year auto loan." [01:03-01:13]

Notable Quotes & Moments

• Jessica Ettinger [00:16]:
  “So how does a car dealer get a customer into a brand new car when the monthly payment is just too high? Well, you lower the payment by stretching out that loan.”
• Phil LeBeau [00:33]:
  “You are starting to hear people talk about eight year...lot of loans.”
• Phil LeBeau [00:41]:
  “That at the end of the day is what people buy vehicles on. They don't go out and they say, oh, I'm going to spend $50,000. They go out and they say how much can I afford every month?”
• Jessica Ettinger [00:57]:
  “And who has an extra $750 a month? So 7 year car loans are becoming very common.”

Key Segment Timestamps

• [00:08] - Headlines highlight car buyer hesitation (Carl Quintanilla)
• [00:29] - Talk of eight-year auto loans begins (Phil LeBeau)
• [00:41] - Why people focus on monthly payments (Phil LeBeau)
• [00:57] - Discussion of ‘who has $750?’ and rise of seven-year loans (Jessica Ettinger)

Final Takeaway

With vehicle prices high and interest rates firm, car loans of seven or even eight years are becoming the dealership's main tool for keeping buyers in the game—ensuring manageable monthly payments, but potentially keeping buyers in debt longer. Jessica Ettinger closes by urging listeners to read more about smart car-buying strategies at CNBC.com.