US cost of living is getting worse: 7-year car loans made up 21.6% of all new-vehicle financing in Q2 2025, an all-time high. This share has DOUBLED over the last 8 years. Over the same period, the share of 5-year loans has declined ~3.5 percentage points, to 18.5%. 6-year car loans have remained steady at ~36.0%. 7-year loans are often the only way buyers can afford to purchase a vehicle as average sale prices have surged +28% over the last 5 years to ~50,000. Longer loans slow down ownership, meaning when borrowers finally trade in, many end up owing more than their car is worth. Consumers are taking on increasingly risky debt.(The Kobeissi Letter)