Record High Car Payments 6/4/26

Summary

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Your Money Minute—Record High Car Payments

Host: Jessica Ettinger (CNBC)
Date: June 4, 2026
Episode Theme:
This episode spotlights the surge in American car and truck loan payments, analyzing new records in borrowing and the escalating costs of both new and used vehicles. CNBC’s Jessica Ettinger and automotive reporter Phil LeBeau break down the data, explore causes, and offer practical financial advice.

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Key Discussion Points & Insights

1. Record High Car Payments

• Average car/truck payment:
  • “The average monthly payment for all vehicles has now hit an all time high of $770.” (Jessica Ettinger, 00:08)
  • Many buyers pay even more than this average.
• Notable Quote:
  • “$770 a month for your vehicle. That's just an average. Many people are paying more.” (Jessica Ettinger, 00:14)

2. Record Breaking Loan Amounts

• Borrowing trends:
  • “The average amount borrowed—the, no surprise here. As the price for vehicles continues to climb. The amount borrowed now is almost $44,000. Guys, that is also another record high.” (Phil LeBeau, 00:23)
• Key Insight:
  • Increasing vehicle prices are directly pushing up how much consumers are borrowing.

3. Causes: New and Used Vehicle Price Dynamics

• New car price increases:
  • New car costs remain very high, nudging more buyers into the used car market.
• Used car market impact:
  • “Carfax says the used vehicle price range for May was between $19,000 and $37,000. It says used vehicle prices jumped in May by about 3%. Why? Because new car prices are so high that's pushing more people over to the used market and then that's driving increases there.” (Jessica Ettinger, 00:34–00:49)
• Notable Quote:
  • “Used vehicle prices jumped in May by about 3%. Why? Because new car prices are so high...that's pushing more people over to the used market and then that's driving increases there.” (Jessica Ettinger, 00:45)

4. Expert Advice: How to Buy a Car in This Market

• Financial advisor guidance:
  • The most financially sound approach is to pay cash, if possible.
  • Target a 3-year-old used vehicle, ideally one coming off a lease and with a single previous owner.
  • Reality check:
    • “But that's daunting for most Americans, especially the all cash part.” (Jessica Ettinger, 00:41)
• Practical takeaways:
  • If paying cash isn’t feasible, be mindful of the total cost of a car loan, including interest and the length of the loan term.

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Timestamps for Important Segments

• Record High Monthly Payments Announced: 00:08–00:14
• Average Amount Borrowed Discussed: 00:23–00:34
• Used Vehicle Price Insights & Market Dynamics: 00:34–00:49
• Expert Buying Advice & Cost Challenges: 00:49–01:15

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Memorable Moments & Notable Quotes

• “The average monthly payment for all vehicles has now hit an all time high of $770.”
  (Jessica Ettinger, 00:08)
• “The amount borrowed now is almost $44,000...another record high.”
  (Phil LeBeau, 00:23)
• “Used vehicle prices jumped in May by about 3%. Why? Because new car prices are so high that's pushing more people over to the used market and then that's driving increases there.”
  (Jessica Ettinger, 00:45)
• “Financial advisors say the best way to buy a car is to avoid a loan altogether, pay cash and buy a three year old used vehicle...But that's daunting for most Americans, especially the all cash part.”
  (Jessica Ettinger, 00:41)

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Conclusion

This bite-sized episode of Your Money Minute delivers a fast, insightful overview of today’s car buying landscape: car payments and borrowed amounts are at historic highs, used car prices are surging, and experts urge caution and creativity when making your next vehicle purchase. For more on car-buying strategies, listeners are directed to cnbc.com.

Transcript

[A]

With a CNBC you money minute, I'm Jessica Ettinger. Americans are making record high monthly car and truck loan payments.

[B]

The average monthly payment for all vehicles has now hit an all time high of $770.

[A]

$770 a month for your vehicle. That's just an average. Many people are paying more. This is CNBC's automotive reporter Phil LeBeau.

[B]

The average amount borrowed the no surprise here. As the price for vehicles continues to climb. The amount borrowed now is almost $44,000. Guys, that is also another record high.

[A]

These data come from Experian Automotive Financial Advisors say the best way to buy a car is to avoid a loan altogether, pay cash and buy a three year old used vehicle. Maybe coming off lease with just one owner. But that's daunting for most Americans, especially the all cash part. Carfax says the used vehicle price range for May was between $19,000 and 30,000 dol. $37,000. It says used vehicle prices jumped in May by about 3%. Why? Because new car prices are so high that's pushing more people over to the used market and then that's driving increases there. There's a lot more on buying a car. @cnbc.com I'm Jessica Ettinger, CNBC.

[D]

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[C]

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