Your Money Minute Even Car Dealers Dislike Their Business Right Now 12/24/25
Dec 24, 2025
Car dealers are feeling the pinch as recent data shows a significant drop in dealer sentiment and customer traffic, the lowest since 2020. The average new car payment has skyrocketed to $748, leading many to opt for longer loans. There's a concerning trend towards 84-month or longer loans as buyers stretch their payments to afford vehicles. This shifting landscape highlights the struggles within the auto industry, revealing that even dealers aren’t happy with the current state of affairs.
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Dealer Sentiment Hits Pandemic-Era Low
- Dealer sentiment is at its weakest since 2020 as new-car prices sit near record highs.
- Slowing showroom traffic and high payments are reshaping how dealers view demand.
Think Twice Before Choosing Long Loans
- Consider the risks of long loans since many will want to sell before the loan ends.
- Remember that 84-month and longer loans increase ownership overlap with depreciation cycles.
Average New-Car Payment Nears $750
- The average monthly payment for a new vehicle is $748, pushing buyers toward longer terms.
- Experian and dealers report growth in seven- and eight-year loans to make payments affordable.