Used-car retailer cuts locations as average new-car payments hit $777 and subprime loan rates exceed 19%.
America’s Car-Mart will close 40% of its dealerships after reporting fourth-quarter results on July 14, 2026. The move follows record-high new-car payments, with the average monthly cost reaching $777 and 20.3% of buyers paying $1,000 or more.
Loan terms have stretched to six or seven years, with interest rates near 7% pushing total interest payments to nearly $10,000 over an 84-month loan. Used-car buyers face similar pressures, financing an average of $30,414 at 10.5% interest, while subprime borrowers pay rates between 19.4% and 21.7%.
The closures reflect broader strain on dealerships specializing in financing for credit-challenged customers, as rising costs and high interest rates squeeze affordability.