For most Americans, a car payment is one of the largest monthly expenses after housing. With vehicle prices at record highs and interest rates still elevated, understanding car loan statistics has never been more important.
Whether you're shopping for a new or used vehicle, refinancing an existing loan, or simply curious about how your payment compares to the national average, these statistics paint a complete picture of auto financing in America.
Key Takeaways
- $748/month is the average new car payment in Q3 2025
- $532/month is the average used car payment
- Americans owe $1.64 trillion in total auto loan debt
- 100 million Americans (29%) currently have auto loans
- Average loan term is 69 months (nearly 6 years)
- 39% of car buyers are underwater (owe more than car is worth)
- Auto loans required monthly: payments are due once per month
What Is the Average Car Payment in America?
1. The average new car payment is $748 per month in Q3 2025
According to Experian data, Americans paying off new vehicle loans spend an average of $748 monthly. This represents a 1.9% increase from Q2 2024, when payments averaged $734.
2. The average used car payment is $532 per month
Used vehicle buyers save over $200 monthly compared to new car buyers. This $216 difference adds up to $2,592 annually — enough to cover insurance for many drivers.
3. 17.23% of new car payments exceed $1,000 per month
Nearly 1 in 5 new car buyers now pay over $1,000 monthly for their vehicle. Meanwhile, only 9.99% of new car payments are under $400, showing how expensive new vehicles have become.
| Payment Range | New Cars | Used Cars |
|---|---|---|
| Under $400 | 9.99% | 31.98% |
| $400-$599 | 22.5% | 35.2% |
| $600-$799 | 28.3% | 19.8% |
| $800-$999 | 22.0% | 8.5% |
| Over $1,000 | 17.23% | 4.57% |
4. Lease payments average $586 per month
Leasing costs less per month than buying new, but you don't build equity. Lease payments increased 4.1% year-over-year in Q2 2025.
How often are you required to make payments on an auto loan? Auto loan payments are due once per month. Most lenders offer due dates around the 1st or 15th of each month, though some allow you to choose your payment date.
How Much Car Debt Do Americans Have?
5. Americans owe $1.64 trillion in auto loan debt
Total auto debt has reached an all-time high, surpassing total student loan debt in the United States. Auto loans are now the second-largest source of consumer debt after mortgages.
6. The average auto loan balance is $24,297 per borrower
According to Experian's 2024 data, the average outstanding auto loan balance grew 2.1% from the previous year. This increase reflects higher vehicle prices across the market.
7. 100 million Americans (29%) have active auto loans
Nearly 1 in 3 Americans is currently paying off a car loan. This represents a significant portion of the adult population carrying monthly vehicle debt.
8. Texas has the highest average auto debt at $29,760 per borrower
Texans carry the largest auto loan balances in the nation, followed by New Mexico at $29,098. These states' preference for trucks and SUVs drives higher loan amounts.
How Much Do Americans Borrow for a Car?
9. The average new car loan amount is $41,572
As of late 2024, borrowers took out an average of $41,572 to finance new vehicles. This correlates with average new car transaction prices of $47,542.
10. The average used car loan amount is $26,468
Used car buyers borrow about $15,000 less than new car buyers on average. Used vehicle prices averaged $27,177 in Q3 2024.
| Vehicle Type | Avg Loan Amount | Avg Vehicle Price | Avg Down Payment |
|---|---|---|---|
| New Car | $41,572 | $47,542 | $6,856 |
| Used Car | $26,468 | $27,177 | $4,219 |
11. Average down payment is $6,856 for new cars, $4,219 for used
According to Edmunds Q4 2024 data, buyers are putting down roughly 14-15% of the purchase price. Larger down payments reduce monthly payments and total interest paid.
12. 56.73% of financed vehicles are used cars
More than half of all auto financing goes toward used vehicles. New cars account for 43.27% of financed purchases, as buyers increasingly turn to used vehicles for affordability.
What Are Current Auto Loan Interest Rates?
13. The average new car loan interest rate is 6.56%
As of Q3 2025, new car buyers with good credit pay an average APR of 6.56%. This is down from pandemic-era highs but still elevated compared to 2020-2021 rates.
14. Used car loan rates average 11.40%
Used vehicle financing carries significantly higher rates — nearly double new car rates. This reflects the higher risk lenders associate with older vehicles.
15. Deep subprime borrowers pay up to 21.60% APR on used cars
Borrowers with the lowest credit scores (below 500) face punishing interest rates. A 21.60% APR on a $25,000 used car adds over $15,000 in interest over a typical loan term.
| Credit Tier | Score Range | New Car APR | Used Car APR |
|---|---|---|---|
| Super Prime | 781-850 | 5.1% | 6.8% |
| Prime | 661-780 | 6.5% | 9.2% |
| Near Prime | 601-660 | 9.5% | 13.5% |
| Subprime | 501-600 | 12.8% | 18.5% |
| Deep Subprime | 300-500 | 15.85% | 21.60% |
How Long Is the Average Car Loan?
16. The average auto loan term is 69 months for new cars
Americans now finance new vehicles for an average of 5 years and 9 months. Used car loans average 67 months, while leases run about 36 months.
17. 84-month loans hit a record 22% market share
Seven-year car loans have nearly tripled since 2015, when they represented just 7.3% of financing. Buyers use longer terms to keep monthly payments affordable despite higher prices.
18. 69.62% of new car loans have terms of 61+ months
Over two-thirds of new car buyers commit to loans lasting more than 5 years. The 72-month (6-year) term remains the most popular at 36% of all new car loans.
| Loan Term | Market Share | Typical Monthly Payment* |
|---|---|---|
| 48 months | 8.5% | $925 |
| 60 months | 21.9% | $765 |
| 72 months | 36.1% | $660 |
| 84 months | 22.0% | $590 |
*Based on $40,000 loan at 7% APR
The Hidden Cost of Long Loans: An 84-month loan costs approximately $5,326 more in interest than a 48-month loan on the same vehicle. Longer terms also increase the risk of being underwater on your loan.
How Many Car Owners Are Underwater on Their Loans?
19. 39% of car buyers are underwater on their loans
In Q4 2024, nearly 4 in 10 drivers who financed their vehicles owed more than their car was worth. This is up from 31% in Q3 2024 — a 25% increase in just one quarter.
20. The average underwater borrower owes $6,458 more than their car is worth
This negative equity hit an all-time high in Q3 2024. When these borrowers trade in their vehicles, they roll this debt into their next loan, starting the cycle again.
21. 54% of electric vehicle owners are underwater
EV buyers face the highest negative equity rates of any vehicle segment. Rapid depreciation due to new model releases and price cuts has left many EV owners with significant negative equity.
22. 84-month loans leave borrowers with -$8,485 in median equity
Longer loan terms dramatically increase underwater risk. By comparison, borrowers with 36-month loans have positive equity of $7,783 on average.
23. 60% of drivers overestimate their car's value
Most car owners think their vehicle is worth more than it actually is. 18% overestimate by $5,000 or more, and 7% overestimate by over $10,000.
Auto Loan Delinquency Statistics
24. 5.1% of Americans with auto loans are delinquent
As of Q1 2025, more than 5 million auto loan borrowers are behind on payments. Rates range from 3.2% in some states to 9.8% in Mississippi.
25. 6.6% of subprime borrowers are 60+ days past due — a record high
Subprime auto loan delinquency reached its highest level since tracking began. Meanwhile, prime borrowers maintain a healthy 0.37% delinquency rate.
26. Southern states have the highest delinquency rates
Mississippi leads with 9.8% of borrowers delinquent, followed by Louisiana (8.4%) and Georgia (7.8%). Southern states occupy all top 14 spots for auto loan delinquency.
| State | Delinquency Rate | Rank |
|---|---|---|
| Mississippi | 9.8% | #1 (Highest) |
| Louisiana | 8.4% | #2 |
| Georgia | 7.8% | #3 |
| National Average | 5.1% | — |
Car Loan Statistics by Generation
27. Gen Z has the highest auto loan delinquency rate at 7.5%
Younger borrowers struggle most with car payments. Millennials follow at 6.9% delinquency, while Baby Boomers have the lowest rate at just 1.9%.
28. Millennials have the highest average loan balance at $38,600
Millennials borrow more for vehicles than any other generation. Millennial buyers account for 33.9% of all new auto loan originations by dollar volume.
| Generation | Avg Loan Balance | Delinquency Rate | Avg APR |
|---|---|---|---|
| Gen Z | $32,069 | 7.5% | 14.05% |
| Millennials | $38,600 | 6.9% | 12.44% |
| Gen X | $35,200 | 4.3% | 10.8% |
| Baby Boomers | $28,400 | 1.9% | 8.5% |
29. 52% of Gen Z car owners skip other bills to make car payments
More than half of Gen Z borrowers have intentionally missed rent, credit card, or other payments to keep current on their auto loans. 33% of millennials report the same behavior.
30. 40% of Gen Z and millennials spend 16%+ of income on car payments
Financial experts recommend spending no more than 10-15% of take-home pay on vehicle costs. Yet 4 in 10 younger borrowers exceed this threshold on payments alone.
The 20/4/10 Rule: Financial experts recommend putting 20% down, financing for no more than 4 years, and keeping total vehicle costs (payment + insurance) under 10% of gross income.
Auto Loan Market Share by Lender Type
31. Banks hold 28.9% of the auto loan market
Banks saw the largest market share growth in Q3 2024, gaining 310 basis points year-over-year. Traditional banks are opening their lending criteria to capture more business.
32. Captive lenders (manufacturer financing) control 26.2% of the market
Automaker-affiliated lenders like Ford Credit and Toyota Financial Services dominate new car financing at 61.8% market share for new vehicles specifically.
33. Credit union market share fell to 20.1%
Credit unions' share dropped from 25.1% the previous year. Tightened liquidity has forced many credit unions to scale back indirect lending programs.
34. Credit unions offer the lowest rates for used car financing
Despite smaller market share, credit unions leverage deposit funding to hold rates lower than large banks, making them attractive for used car buyers and refinancing.
Car Payment Statistics by Credit Score
35. Near-prime borrowers pay the highest new car payments at $793/month
Surprisingly, borrowers with credit scores of 601-660 have higher average payments than any other group. Higher interest rates and longer terms contribute to this counterintuitive finding.
36. Prime borrowers with used cars pay the lowest at $519/month
Good credit combined with a used vehicle purchase produces the most affordable monthly payments. These buyers benefit from both lower vehicle prices and better interest rates.
| Credit Tier | New Car Payment | Used Car Payment |
|---|---|---|
| Super Prime (781+) | $712 | $498 |
| Prime (661-780) | $735 | $519 |
| Near Prime (601-660) | $793 | $548 |
| Subprime (501-600) | $777 | $565 |
The Bottom Line
Car loan debt has reached unprecedented levels in America. With the average new car payment at $748 monthly and total auto debt exceeding $1.64 trillion, understanding these statistics is essential for making informed vehicle financing decisions.
Key trends to watch: longer loan terms are becoming standard (with 84-month loans now at 22% market share), negative equity affects 39% of borrowers, and younger generations face the highest delinquency rates despite taking on the largest loans.
Before financing your next vehicle, consider the 20/4/10 rule: put down 20%, finance for 4 years or less, and keep total vehicle costs under 10% of your income. Following this guidance can help you avoid becoming another underwater auto loan statistic.