Capital One Auto says rising car debt isn't a big issue as payment-to-income ratios stay steady.

Capital One Auto's president says rising consumer automotive debt and longer loans aren't alarming because the payment-to-income ratio for car buyers has remained stable around 10% since 2019. Although median monthly car payments increased from $390 to $525, 80% of financed car buyers keep payments below 15% of their income by opting for longer loan terms. This cautious approach contrasts with concerns about "forever loans" causing negative equity, but Capital One believes consumers are managing payments responsibly. The trend toward longer loans helps keep monthly payments affordable, especially for lower-income buyers, though it may increase maintenance costs over time.