A new AutoPayPlus survey of 2,000 U.S. auto dealers and F&I executives reveals deep concerns over ever-lengthening loan terms that are likely to trap consumers in long purchase cycles.

Nearly two-thirds (64%) of dealers say more than 75% of their customers are agreeing to terms of 72 months or longer; 76% say they are “extremely” concerned by this trend, citing fears of an “84-month trade-in cliff” that could slow future showroom traffic.

Remarkably, 90% of all respondents say they are encountering negative equity “frequently” or in “almost every deal.”

“The industry has been so focused on rate conversations that it has missed the real problem entirely,” writes AutoPayPlus founder and CEO Robert Steenbergh. “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,” noting his company’s RePayPlus program was designed to help dealers generate ongoing post-sale income from enrolled customers.