A wave of overpriced trucks bought on stretched, ultra-long loans is pushing millions of Americans underwater on their car debt — bad for buyers, and a warning sign for the wider economy.

• More Americans owe more on their trucks than the trucks are worth than ever before, with the average owner about $6,000 in the hole.
• Dealers and banks sell $60,000–$90,000 trucks by hiding the real cost, pushing 7-year loans and focusing buyers only on the monthly payment.
• These trucks lose value fast — luxury models can drop 25–30% a year — so long loans lock owners into debt on a shrinking asset.
• Wall Street bundles risky car loans into bonds built to profit even when 40%+ of borrowers default, so banks win while buyers go bankrupt.
• Repossessions jumped 43% in two years, subprime defaults now rival 2008 mortgage levels, and lender Tricolor collapsed in late 2025, rattling JPMorgan and BlackRock.

Outlook: With unsold trucks piling up on lots and delinquencies above their 2009 peak, the subprime auto market looks set to keep unraveling, with more defaults and failures likely ahead.