As you hopefully know, the health of Wall Street and the health of Main Street are two very different things. That is, you can’t judge what’s really happening in the economy based on the Wall Street numbers. Here’s an Op-Ed from contributor Hank Martin to tell you what’s really going on with the economy:
The Mirage of Prosperity: What Seven-Year Car Loans Say About Our Economy
Breaking news: Americans are now taking out seven-year loans just to afford a car. Let that sink in.
According to Bloomberg data, as of the second quarter of 2025, 21.6% of all new vehicle financing is stretched across seven years. On average, that means a buyer will shell out $15,460 in interest alone—on something that’s worth half as much by the time it’s paid off.
And here’s the kicker: lenders aren’t stopping at seven years. They’re already pushing eight-year loans to keep the illusion of affordability alive.
This is not the sign of a healthy economy. It’s the sign of a strained middle class clinging to the basics of mobility through a financing scheme that looks more like a mortgage than a car note. For decades, the 5-year loan was the standard. Then, quietly, six-year terms became the norm. Now seven years is a fifth of the market. Tomorrow? Who knows—ten-year car loans? Leasing our way to nowhere?
The auto industry hails this as “flexibility.” Wall Street calls it “innovation.” Let’s be honest: it’s desperation. Instead of solving the underlying affordability crisis—skyrocketing vehicle costs, stagnant wages, and interest rates that make credit cards look charitable—we’re stretching out debt further and further, kicking the can down the road.
Also, it was recently reported that the vast majority of car owners are upside down on their car notes, including luxury car owners. Credit bureaus are reporting more loan defaults than any time since the pandemic. A high percentage are also 90 days late on their payment. 
The truth is simple: if the average American cannot afford a car without financing it for nearly a decade, then our economy is not strong. It is hollow. And these longer loan terms are not a solution; they’re a warning flare.
When debt becomes the only bridge to daily life, the bridge isn’t being strengthened—it’s being overburdened. And sooner or later, it collapses.
Hank Martin