In recent years rising student loan debt has been a widely covered phenomena. Automotive debt has also grown rapidly but has seen much less media coverage. This infographic explores reasons auto debt has grown rapidly. A number of leading factors include vehicle prices increasing over $4,000 over the past 4 years, buyers increasing loan terms from an average duration of 5 years to 7 years and nearly 1 in 3 buyers which are trading in a vehicle when they purchase a new one end up trading in a vehicle with negative equity, ensuring their next loan is further underwater than the typical auto loan.
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Source: CarPayment Calculator