 TITLE: Why You Should Avoid Long-Term Auto Loans CONTENT: Auto Loan Debt Is Rising\n------------------------\nSince 2009, auto loan debt has risen by 81%; it's now the third-largest type of consumer debt, according to Experian data. All told, Americans owe more than $1.3 trillion in outstanding auto loan balances.\nThe growth in auto loan debt is partly a result of rising vehicle prices. In the first quarter of 2019, the average loan for new passenger vehicles hit a record high of $32,187, Experian data shows. More than 85% of new cars are financed, with the average monthly payment topping $500.\nAs auto loans get larger, consumers are increasingly stretching out their loan terms in an attempt to make their monthly payments more manageable. According to Experian, in Q1 2019, the number of new loans with terms between 85 and 96 months for new passenger vehicles rose 38% compared with Q1 2018. END