The 100 Month Car Debt Trap

My first reaction when I read that consumers are signing up for 100-month car loans was heartbreak.

Not frustration. Not judgment. Heartbreak.

A 100-month car loan belongs in the same category as a 50-year mortgage. Both are signals of a deeper affordability crisis. Millions of Americans are doing everything they can to meet basic needs, and the math simply is not working anymore. When the only way to afford a necessary purchase is to stretch debt across nearly a decade, the problem is bigger than personal discipline or bad choices.

For many couples, a car is not a luxury. It is a requirement for work, childcare, medical appointments, and daily life. That is what makes these loans so dangerous. They offer short-term relief while quietly removing long-term flexibility.

This is not a post about shame. It is about understanding risk before it locks you in.

Why 100 Month Car Loans Exist

Longer car loans did not appear out of nowhere.

The price of new cars and trucks in the U.S. has increased 33% since 2020. Interest rates are higher than many buyers are used to. Wages have not kept pace with the cost of living. At the same time, dealers and lenders have become increasingly skilled at selling payments instead of prices.

Instead of asking “How much does this car cost?” buyers are guided toward “Can you afford this monthly payment?”

When the answer is no, the term gets stretched.

Sixty months becomes seventy-two. Seventy-two becomes eighty-four. Now, 100 months are entering the conversation.

From the lender’s perspective, longer terms move inventory. From the buyer’s perspective, it feels like access. For couples under pressure, especially dual-career households juggling childcare, housing, and student loans, the temptation is real.

But access is not the same as affordability.

The Illusion of Affordability

Lower monthly payments feel like relief. They reduce immediate stress and create breathing room on a tight budget. That feeling can be powerful, especially when transportation is essential.

The problem is that long loan terms mask the true cost of ownership.

When you extend a loan to one hundred months, you are not making the car cheaper. You are spreading the pain out longer and thinner. Interest compounds. Depreciation accelerates. And the gap between what the car is worth and what you owe grows quickly.

This is how couples get trapped without realizing it.

The decision feels responsible at the moment. The consequences arrive later.

The Real Danger: Being Upside Down Almost Immediately

New vehicles depreciate fast. Long loan terms result in slow principal pay down. That combination is where the real risk lives.

Consider a realistic example of someone with an average to below-average credit score taking out an auto loan to buy a Honda Passport. I chose this vehicle because it is the average cost of a new car: ~$50,000.

As you can see, the borrower is underwater almost immediately, and the gap is not small. 

Based on the depreciation data, the Honda Passport is worth about $37,900 after year one, while the loan balance is still nearly $49,800. That puts the owner roughly $12,000 underwater after just one year, meaning if the owner wants to sell the car, they will need to write a check for $12,000 after paying off the loan.

By year two, the car’s resale value drops to about $33,700, while the loan balance remains close to $45,800, widening the negative equity to more than $12,000 again. 

Even after five years of payments, the loan balance is still about $29,300, while the vehicle is worth roughly $23,900, leaving the borrower underwater by more than $5,000 halfway through the decade-long loan. 

This is how long-term auto loans quietly trap people. The car loses value faster than the loan balance declines, so if the owner needs to sell, trade in, or exit the loan due to a job loss, medical expense, or life change, they cannot do so without bringing thousands of dollars in cash to the table. 

This is not a fringe scenario. This is the math of long-term auto loans.

When Life Happens, and Options Disappear

Most financial advice assumes stable income and calm conditions. Real life rarely cooperates.

Job loss. Medical emergencies. Caregiving responsibilities. Burnout. Divorce. Any one of these can disrupt even a well-planned budget.

When a car loan is short and manageable, there are options. You can sell the car. You can downsize. You can temporarily reduce expenses.

When a loan is stretched over 100 months, those options disappear.

If you cannot afford the payment and cannot sell the car, you are stuck. Missed payments damage credit. Repossession creates long-term financial scars. Stress spills into the relationship.

For couples, this is where money problems stop being about numbers and start affecting trust, communication, and mental health.

Long-term auto debt does not just limit cash flow; it also increases the risk of default. It limits choices.

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Related: The Ultimate Guide to the Car Buying Process in Marriage

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Better Alternatives When a 100 Month Loan Feels Like the Only Option

When couples feel boxed in, creativity matters more than pride.

Buying a lower-priced used vehicle is often the simplest solution. It may not match your original vision, but it can quickly restore flexibility.

Public transportation or hybrid commuting can work in some regions, especially when paired with remote work options.

Ride sharing can serve as a temporary bridge rather than a permanent solution. It is not ideal, but it may be cheaper than committing to a decade of debt.

Downsizing expectations is not failure. It is a strategic choice to protect future options.

Transportation is a utility. Treating it as such can reduce pressure and lead to better long-term outcomes.

Short-Term Relief Can Create Long-Term Risk

The promise of a lower payment is seductive. It feels like a solution. But a 100-month car loan is often just delayed stress with interest attached.

Flexibility is a financial asset. Once it is gone, everything feels harder.

Before signing anything that follows you for nearly a decade, slow the process down. Run the numbers. Talk it through. Ask what you are protecting and what you might be risking.

Cars should get you where you need to go. They should not trap you there.

Professional Support

If you want help thinking through big financial decisions as a couple, I support partners who want to manage money and the home as a team. You do not have to navigate these choices alone.

I'm the only Accredited Financial Counselor® and Fair Play Facilitator®, empowering high-achieving couples with systems to manage money and the home as a team — drawn from decades of national leadership and lived experience.

Click here to schedule a free 15 minute exploratory call.