EPISODE · Jun 25, 2026 · 9 MIN
Why Your Car Payment Feels Stuck Even as Inflation Slows
from Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People · host Fexingo
Episode 73 of Inflation Explained with Fexingo digs into a puzzle: the CPI shows inflation cooling, but the average monthly car payment keeps rising. Lucas and Luna examine how higher interest rates, longer loan terms, and record negative equity are trapping borrowers. As of June 2026, the Fed funds rate sits at 3.63 percent, down only a fraction from its peak. Auto loan rates for new cars have pushed past 8.5 percent for the first time in decades, while used car prices have fallen 3 percent year-over-year according to the latest CPI data. Lucas breaks down the numbers: a $40,000 loan at 8.5 percent over 72 months means paying over $11,000 in interest alone. Luna connects it to the broader story of sticky services inflation—car loans are a monthly service cost that isn't cooling. They also touch on the hidden impact on subprime borrowers and why trade-ins aren't helping. No ads, just the real mechanics behind your monthly payment. #AutoLoans #CarPayments #Inflation #CPI #FederalReserve #InterestRates #NegativeEquity #SubprimeBorrowers #StickyInflation #AutoFinance #UsedCarPrices #LoanTerms #MonthlyPayment #CostOfLiving #Economics #FexingoBusiness #BusinessPodcast #InflationExplained Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Episode 73 of Inflation Explained with Fexingo digs into a puzzle: the CPI shows inflation cooling, but the average monthly car payment keeps rising. Lucas and Luna examine how higher interest rates, longer loan terms, and record negative equity are trapping borrowers. As of June 2026, the Fed funds rate sits at 3.63 percent, down only a fraction from its peak. Auto loan rates for new cars have pushed past 8.5 percent for the first time in decades, while used car prices have fallen 3 percent year-over-year according to the latest CPI data. Lucas breaks down the numbers: a $40,000 loan at 8.5 percent over 72 months means paying over $11,000 in interest alone. Luna connects it to the broader story of sticky services inflation—car loans are a monthly service cost that isn't cooling. They also touch on the hidden impact on subprime borrowers and why trade-ins aren't helping. No ads, just the real mechanics behind your monthly payment. #AutoLoans #CarPayments #Inflation #CPI #FederalReserve #InterestRates #NegativeEquity #SubprimeBorrowers #StickyInflation #AutoFinance #UsedCarPrices #LoanTerms #MonthlyPayment #CostOfLiving #Economics #FexingoBusiness #BusinessPodcast #InflationExplained Keep every episode free: buymeacoffee.com/fexingo
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Why Your Car Payment Feels Stuck Even as Inflation Slows
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