ORLANDO, FL – (March 24, 2026) – AutoPayPlus, a pioneering automated financial concierge service, today announced the findings from an industry-wide survey revealing deep concern over the long-term impact of extended auto loan terms. The data highlights a growing ‘84-Month Trade-In Cliff’ that is removing customers from the purchase cycle for too long, threatening future sales volume and dealer profitability.
The online survey, conducted in March 2026 and presented to more than 2,000 automotive dealers and Finance & Insurance (F&I) executives, found that nearly two-thirds of dealers (64%) report more than three-quarters of their customers are now choosing loan terms of 72 months or longer. More strikingly, 76% of dealers say they are “Extremely Concerned” that these extended terms are keeping customers away from the showroom for too long, disrupting the repeat-purchase cycle that has historically driven dealership revenue.
The negative equity problem compounds the issue at nearly every turn. A majority of respondents (90%) reported encountering negative equity “Frequently” or in “Almost every deal,” reflecting a market in which elevated vehicle prices and stretched loan terms have made underwater trade-ins the norm rather than the exception. When a customer owes more than their vehicle is worth, the transaction stalls thus reducing showroom traffic, limiting inventory turnover, and eroding the dealer’s ability to build the kind of repeat business that sustains long-term growth.
What may surprise industry observers is where dealers place the blame. While public attention has focused on interest rates and vehicle sticker prices as the primary affordability barriers, dealers themselves tell a different story. When asked to identify the single biggest threat to their 2026 sales goals, nearly 60% of respondents pointed to customer cash flow and budgeting challenges outpacing high MSRPs (26%) and high interest rates (14%) combined. The implication is significant, as the affordability crisis facing auto retail is less about the cost of borrowing and more about the consumer’s ability to absorb a large fixed monthly obligation within the realities of their household budget.
The survey also uncovers a significant and largely untapped revenue opportunity for dealers willing to look beyond the traditional F&I transaction. Despite widespread acknowledgment that the current model is under strain, with 85% of respondents agreeing that a shift toward recurring, servicing-based revenue is necessary, the industry has been slow to act, in part because many dealers are simply unaware of what’s available. A full 75% of respondents said they had no idea that biweekly payment servicing could be structured as a reinsurable, tax-deferred product, comparable in structure and profit potential to a Vehicle Service Contract.
“The industry has been so focused on rate conversations that it has missed the real problem entirely,” said Robert Steenbergh, Founder and CEO of AutoPayPlus. “Dealers aren’t losing deals because of the Fed. They’re losing them because their customers can’t manage a large monthly payment alongside their household expenses. The solution isn’t a lower rate it’s a better payment architecture. Offerings like our RePayPlus program are designed to close this gap by allowing dealers to generate ongoing income from every enrolled customer long after the original sale closes.”
For more information about this survey data and to learn more about AutoPayPlus’s reinsured bi-weekly payment program, RePayPlus, please visit www.autopayplus.com
About AutoPayPlus
Headquartered in Orlando, Florida, AutoPayPlus is a pioneering automated financial concierge service with over 20 years of experience and a proven track record. The company transfers over $1 billion annually, leveraging technology to empower large enterprises and automotive dealerships with a unique sign-on service that streamlines financial processes and improves members’ financial well-being. With more than 6,000 five-star ratings across Google and Trustpilot, AutoPayPlus demonstrates a long-standing commitment to customer satisfaction. Learn more at www.AutoPayPlus.com.