The Average Monthly Car Payment for new vehicles in the United States saw a slight increase to $737 in the third quarter of 2024, marking a 0.7% rise from the same period in 2023. Conversely, there was good news for those opting for used vehicles or leases, with average monthly payments decreasing by 3.3% and 4.9% respectively.
LendingTree has compiled a comprehensive analysis of auto loan data, examining payment amounts, loan originations, term lengths, and delinquency rates to provide a detailed overview of the auto loan landscape and prevailing trends in the U.S. as we approach 2025. Here are the key auto loan statistics you need to know for 2025.
Key Auto Loan Trends and Average Car Payment Statistics for 2025
- New car payments are inching up while used and lease payments decline. Experian data from Q3 2024 indicates a 0.7% increase in average monthly car payments for new vehicles. In contrast, payments for used and leased vehicles experienced decreases of 3.3% and 4.9% respectively. This results in average monthly car payments of approximately $737 for new cars, $520 for used cars, and $581 for leased vehicles.
- Used car prices are becoming more attractive. The cost of used cars and trucks has fallen by 3.4% year-over-year according to the U.S. Bureau of Labor Statistics (BLS) consumer price index for November 2024. New vehicle prices also saw a decrease, albeit smaller, of 0.7%. On average, Americans are borrowing $41,086 for new vehicle purchases and $26,091 for used vehicles, based on Experian data.
- Auto loan debt holds the second-largest share of consumer debt. Americans’ total auto loan debt is a staggering $1.644 trillion, according to the Federal Reserve Bank of New York. This represents 9.2% of all American consumer debt, highlighting the significant financial commitment of vehicle ownership.
- New auto loans originated in Q3 2024 totaled $184.2 billion. Breaking down loan origination by age, individuals under 50 years old accounted for $108.1 billion in auto debt during this period, while those 50 and older borrowed $70.6 billion, according to the New York Fed.
- Loan terms are extending for years. The average auto loan term is now 68.2 months for new cars, 67.2 months for used cars, and 35.7 months for leased vehicles, according to Experian. This extended repayment period reflects the increasing cost of vehicles and consumers’ strategies to manage monthly payments.
- Auto loan delinquency rates are on the rise. As of Q3 2024, 4.6% of outstanding auto loan debt was at least 90 days delinquent, according to the New York Fed, a 17.4% increase from Q3 2023. Loans 30 days past due also increased to 8.1% in Q3 2024, up 9.9% from 7.4% in the same quarter last year.
- Prime credit holders dominate vehicle financing. Borrowers with prime or super-prime credit scores (661 and above) are responsible for 70.9% of retail vehicle financing, according to Experian. In contrast, borrowers with credit scores of 600 or lower account for only 14.0% of the market.
- Top vehicle choices on LendingTree include Ford F-150, Chevrolet Silverado 1500, and Toyota RAV4. For the third consecutive quarter in Q3 2024, the Ford F-150 remained the most popular vehicle model among consumers considering purchases on the LendingTree platform.
Slight Increase in Average Monthly Car Payments for New Vehicles
Experian data from Q3 2024 shows the average monthly car payment for a new vehicle is $737, a 0.7% increase year-over-year. For used cars, the average monthly payment is $520, a 3.3% decrease from the previous year. New vehicle leases are averaging $581 per month, representing a 4.9% year-over-year decrease.
Year-over-Year Changes in Average Monthly Car Payments
| 2023 Payments | 2024 Payments | Difference ($) | Difference (%) | |
|---|---|---|---|---|
| New Vehicles | $732 | $737 | $5 | 0.7% |
| Used Vehicles | $538 | $520 | -$18 | -3.3% |
| New Leases | $611 | $581 | -$30 | -4.9% |
Source: Experian State of the Automotive Finance Market, Q3 2023 and Q3 2024.
Interestingly, borrowers with credit scores in the nonprime (601-660) and subprime (501-600) ranges are seeing the highest average monthly payments for new vehicles, at $767 and $750 respectively. This suggests that while average payments are up slightly, the impact may be disproportionately felt by those with less-than-perfect credit.
Average Monthly Payments by Credit Score Range
| New Vehicles | Used Vehicles | New Leased Vehicles | |
|---|---|---|---|
| All | $737 | $520 | $581 |
| 781-850 (Super-Prime) | $723 | $517 | $579 |
| 661-780 (Prime) | $744 | $511 | $578 |
| 601-660 (Nonprime) | $767 | $529 | $599 |
| 501-600 (Subprime) | $750 | $535 | $596 |
| 300-500 (Deep Subprime) | $724 | $535 | Not Available |
Source: Experian State of the Automotive Finance Market, Q3 2024.
Tip: Calculate Your Estimated Car Payment
Utilize LendingTree’s auto loan calculator to estimate your monthly car payment and gain a better understanding of potential costs based on your specific loan amount, interest rate, and loan term.
Used Car and Truck Prices Experience a Decrease
Consumers are finding more value in the used car market as prices for used cars and trucks have decreased by 3.4% year-over-year, according to the November 2024 BLS consumer price index.
A Wall Street Journal article from June 2024 highlighted a growing sentiment among buyers that used cars often offer comparable or even superior designs and features compared to newer models, further driving the appeal of used vehicles.
Meanwhile, new vehicle prices also saw a decrease of 0.7% year-over-year, mirroring the 0.7% increase observed in the average new car payment over the past year. This suggests that while manufacturers may be slightly reducing prices, other factors like interest rates could be contributing to the slight rise in average monthly payments.
Average Auto Loan Amounts for New Vehicles Still Exceed $40,000
In Q3 2024, the average auto loan amount reached $41,086 for new vehicles and $26,091 for used vehicles, according to Experian. While new vehicle loan amounts slightly increased from $40,927, used vehicle loan amounts saw a slight decrease from $26,248 in the previous quarter.
Interestingly, new car buyers in the prime credit tier (661-780) tend to take out the largest loans, averaging $43,138. For used cars, borrowers in the super-prime credit tier (781-850) borrow the most, averaging $27,860, down from $28,079 in the previous quarter.
Average Auto Loan Amounts by Credit Score Range
| New Vehicles | Used Vehicles | |
|---|---|---|
| All | $41,086 | $26,091 |
| 781-850 | $39,369 | $27,860 |
| 661-780 | $43,138 | $27,243 |
| 601-660 | $42,765 | $25,047 |
| 501-600 | $38,400 | $21,905 |
| 300-500 | $34,608 | $20,082 |
Source: Experian State of the Automotive Finance Market, Q3 2024.
Americans’ Auto Loan Debt Reaches $1.644 Trillion
The total outstanding vehicle debt in the U.S. has significantly increased by 76.0% between Q3 2014 ($934 billion) and Q3 2024 ($1.644 trillion), according to data from the Federal Reserve Bank of New York.
Over the past decade, the only decrease in auto loan debt occurred in Q2 2020, during the initial phase of the COVID-19 pandemic.
Outstanding Auto Debt Over Time
| Quarter | Outstanding Auto Debt | Quarter | Outstanding Auto Debt | |
|---|---|---|---|---|
| Q3 2014 | $934 billion | Q3 2019 | $1.315 trillion | |
| Q4 2014 | $955 billion | Q4 2019 | $1.331 trillion | |
| Q1 2015 | $968 billion | Q1 2020 | $1.346 trillion | |
| Q2 2015 | $1.006 trillion | Q2 2020 | $1.343 trillion | |
| Q3 2015 | $1.045 trillion | Q3 2020 | $1.360 trillion | |
| Q4 2015 | $1.064 trillion | Q4 2020 | $1.374 trillion | |
| Q1 2016 | $1.071 trillion | Q1 2021 | $1.382 trillion | |
| Q2 2016 | $1.103 trillion | Q2 2021 | $1.415 trillion | |
| Q3 2016 | $1.135 trillion | Q3 2021 | $1.443 trillion | |
| Q4 2016 | $1.157 trillion | Q4 2021 | $1.458 trillion | |
| Q1 2017 | $1.167 trillion | Q1 2022 | $1.469 trillion | |
| Q2 2017 | $1.190 trillion | Q2 2022 | $1.502 trillion | |
| Q3 2017 | $1.213 trillion | Q3 2022 | $1.524 trillion | |
| Q4 2017 | $1.221 trillion | Q4 2022 | $1.552 trillion | |
| Q1 2018 | $1.229 trillion | Q1 2023 | $1.562 trillion | |
| Q2 2018 | $1.238 trillion | Q2 2023 | $1.582 trillion | |
| Q3 2018 | $1.265 trillion | Q3 2023 | $1.595 trillion | |
| Q4 2018 | $1.274 trillion | Q4 2023 | $1.607 trillion | |
| Q1 2019 | $1.280 trillion | Q1 2024 | $1.616 trillion | |
| Q2 2019 | $1.297 trillion | Q2 2024 | $1.626 trillion | |
| Q3 2024 | $1.644 trillion |
Source: New York Fed Consumer Credit Panel/Equifax data.
Auto Loans Account for 9.2% of American Consumer Debt
While mortgages constitute the largest portion of American consumer debt at 70.2%, auto loans represent a significant 9.2%, according to the New York Fed. As of Q3 2024, auto loan debt ($1.644 trillion) has surpassed student loan debt ($1.606 trillion), highlighting the substantial financial burden of vehicle ownership for many Americans.
$184.2 Billion in Auto Loans Originated in Q3 2024
In Q3 2014, Americans borrowed $132.6 billion in auto loans. Ten years later, in Q3 2024, this figure has increased significantly to $184.2 billion, according to the New York Fed, demonstrating a continued strong demand for auto financing.
Quarterly Volume of Auto Loan Originations
| Quarter | Auto Loan Originations | Quarter | Auto Loan Originations | |
|---|---|---|---|---|
| Q3 2014 | $132.6 billion | Q3 2019 | $159.1 billion | |
| Q4 2014 | $125.5 billion | Q4 2019 | $158.6 billion | |
| Q1 2015 | $117.0 billion | Q1 2020 | $150.3 billion | |
| Q2 2015 | $148.3 billion | Q2 2020 | $135.9 billion | |
| Q3 2015 | $150.8 billion | Q3 2020 | $168.2 billion | |
| Q4 2015 | $131.5 billion | Q4 2020 | $161.6 billion | |
| Q1 2016 | $123.9 billion | Q1 2021 | $152.7 billion | |
| Q2 2016 | $148.9 billion | Q2 2021 | $201.9 billion | |
| Q3 2016 | $149.8 billion | Q3 2021 | $198.8 billion | |
| Q4 2016 | $142.0 billion | Q4 2021 | $180.5 billion | |
| Q1 2017 | $132.4 billion | Q1 2022 | $176.6 billion | |
| Q2 2017 | $148.4 billion | Q2 2022 | $198.8 billion | |
| Q3 2017 | $150.6 billion | Q3 2022 | $185.4 billion | |
| Q4 2017 | $137.2 billion | Q4 2022 | $186.2 billion | |
| Q1 2018 | $130.9 billion | Q1 2023 | $161.7 billion | |
| Q2 2018 | $151.2 billion | Q2 2023 | $179.0 billion | |
| Q3 2018 | $157.6 billion | Q3 2023 | $179.3 billion | |
| Q4 2018 | $144.3 billion | Q4 2023 | $164.9 billion | |
| Q1 2024 | $165.5 billion | Q1 2024 | $165.5 billion | |
| Q2 2024 | $179.1 billion | Q2 2024 | $179.1 billion | |
| Q3 2024 | $184.2 billion |
Source: New York Fed Consumer Credit Panel/Equifax data.
Borrowers in Their 30s and 40s Take Out the Largest Auto Loans
According to the New York Fed, Americans in their 30s and 40s were the most significant borrowers of auto loans in Q3 2024, taking out $40.1 billion and $40.8 billion respectively.
Consumers in their 50s borrowed considerably less at $34.9 billion, and those in their 60s borrowed $23.0 billion. Interestingly, younger adults aged 18 to 29 borrowed more ($27.2 billion) than those in their 60s.
Collectively, Americans under 50 years old originated $108.1 billion in auto debt in Q3 2024, compared to $70.6 billion for those 50 and older. This indicates that younger demographics are currently driving the auto loan market.
Highest Credit Score Borrowers Originate the Largest Auto Loans
Borrowers with the strongest credit scores are taking out the largest volume of auto loans. In Q3 2024, those with credit scores of 720 or higher originated $97.6 billion in auto loan debt. The combined origination volume for all other credit score tiers was $86.7 billion, according to the New York Fed.
Auto Loan Originations by Credit Score
| Less than 620 | 620-659 | 660-719 | 720-759 | 760+ | |
|---|---|---|---|---|---|
| Q3 2023 | $28.0 billion | $18.8 billion | $38.8 billion | $27.6 billion | $66.1 billion |
| Q4 2023 | $25.5 billion | $17.0 billion | $34.6 billion | $25.3 billion | $62.5 billion |
| Q1 2024 | $26.2 billion | $15.8 billion | $34.3 billion | $25.6 billion | $63.6 billion |
| Q2 2024 | $30.0 billion | $18.7 billion | $36.6 billion | $28.3 billion | $65.6 billion |
| Q3 2024 | $31.2 billion | $18.2 billion | $37.3 billion | $28.6 billion | $69.0 billion |
Source: New York Fed Consumer Credit Panel/Equifax data.
Extended Auto Loan Terms Reflect Longer Repayment Periods
The average auto loan term for new vehicles is 68.2 months, just under six years, according to Experian. Used car loans have a slightly shorter average term of 67.2 months, despite being significantly smaller in loan amount on average.
Average Loan Term Lengths by Credit Score Range
| New Vehicle Loans | Used Vehicle Loans | New Leased Vehicles | |
|---|---|---|---|
| All | 68.2 months | 67.2 months | 35.7 months |
| 781-850 | 63.8 months | 65.4 months | 35.1 months |
| 661-780 | 71.2 months | 68.3 months | 36.0 months |
| 601-660 | 74.3 months | 68.1 months | 36.5 months |
| 501-600 | 73.6 months | 66.2 months | 36.4 months |
| 300-500 | 72.6 months | 63.9 months | Not Available |
Source: Experian State of the Automotive Finance Market, Q3 2024.
For borrowers with nonprime credit (scores of 601-660), new car loan terms are even longer, averaging 74.3 months, exceeding six years. Conversely, borrowers with super-prime credit (scores of 781-850) have the shortest average new car loan term at 63.8 months.
Matt Schulz, LendingTree chief credit analyst, cautions against long loan terms: “That’s such a long time to be stuck paying for a depreciating asset. It can have an enormous impact on a family’s finances. That money going toward a car payment isn’t earning interest and funding your emergency savings, your retirement nest egg, a mortgage down payment, or your kid’s college fund. While vehicles are essential for many, and new cars are appealing, the long-term financial implications of extended loan terms should be carefully considered.”
The average new car lease term is 35.7 months, representing a significantly shorter commitment compared to purchasing.
Auto Loan Delinquency Rates Remain Below Peak Levels
Data from the New York Fed indicates that 90-day auto loan delinquency rates reached a peak of 5.3% in Q4 2010 and have since decreased to 4.6% as of Q3 2024.
Loans 30 days past due saw a high of 10.9% in Q2 2009. After 2011, this rate remained at or below 8.0% until Q3 2024, when it slightly exceeded this threshold at 8.1%. While delinquency rates are increasing, they are still below the levels seen during the peak of the financial crisis.
Banks and Credit Unions Lead in Auto Financing Market Share
As of Q3 2024, banks hold the largest share of the auto financing market at 28.7%, followed by credit unions at 23.7%, and captive lenders (manufacturers’ financing arms) at 21.9%.
“Buy-here, pay-here” dealerships, often associated with predatory lending practices, account for a significant 15.6% of the used car financing market. Captive lenders have a smaller presence in the used car market, holding only 8.2% market share.
Schulz advises caution regarding buy-here, pay-here loans, stating, “These loans can come with higher prices, interest rates comparable to credit cards rather than typical auto loans, and various fees. Payment schedules may also be unconventional, requiring more frequent payments than the standard monthly schedule. Some lenders may even install tracking devices on vehicles to facilitate repossession in case of payment default.”
He emphasizes that buy-here, pay-here options should be considered as a last resort, and that a good credit score is crucial for accessing more favorable financing options.
“Good credit unlocks better options, which is incredibly important,” Schulz states. “It’s essential to shop around and compare offers. Financing directly through the car dealership often leads to overpaying. Utilize online platforms to easily compare auto loan offers, and consider exploring credit unions as well. Once you find a suitable deal, get preapproved by the lender. Preapproval provides leverage with the car seller, signaling that you are a serious buyer with financing secured elsewhere.”
Sources
- Experian
- U.S. Bureau of Labor Statistics
- Federal Reserve Bank of New York
- LendingTree
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