Average Car Payment and Auto Loan Statistics: 2025

The average car payment for new vehicles was $737 per month in the third quarter of 2024, up 0.7% from Q3 2023. Meanwhile, average car payments for used and leased vehicles decreased by 3.3% and 4.9%, respectively, over the same period.

LendingTree looked at payments, originations, term lengths, delinquencies and more to get a full picture of U.S. auto loan debt and trends. Here’s our 2025 roundup of auto loan statistics.

Auto loan statistics in 2025: Average car payments to most popular models

Average monthly car payments for new vehicles jump slightly year over year

The average car payment for a new vehicle is $737 monthly, according to Q3 2024 Experian data — up 0.7% year over year. Used cars have an average monthly payment of $520, down 3.3% over the same period. Meanwhile, new lease payments average $581, a 4.9% year-over-year decrease.

Annual changes in average monthly car payments

Source: Experian State of the Automotive Finance Market, Q3 2023 and Q3 2024.

Those with credit scores of 601 to 660 (in the nonprime or fair ranges) and 501 to 600 (in the subprime or poor and fair ranges) saw the highest average monthly payments for new vehicles, at $767 and $750, respectively.

Average monthly payments by credit score range

Source: Experian State of the Automotive Finance Market, Q3 2024.

Tip

You can use the LendingTree auto loan calculator to estimate your monthly car payment.

Used car and truck prices see dip

The used car market was friendlier to consumers as used car and truck prices dropped 3.4% year over year, per the November 2024 BLS consumer price index.

A June 2024 Wall Street Journal article said buyers increasingly believe that used cars offer better designs and features that new ones don’t provide.

Meanwhile, new vehicle prices dipped 0.7% year over year — the same as the 0.7% decrease in the average new car payment over the past year.

Average auto loan amounts for new vehicles remain above $40,000

Average auto loan amounts reached $41,086 for new vehicles and $26,091 for used vehicles in Q3 2024, according to Experian. New vehicle loan amounts rose from an average of $40,927, while used vehicle loan amounts dipped slightly from $26,248 in the previous quarter.

New car buyers in the prime credit tier (661 to 780) take out the largest loans — $43,138, on average. Borrowers with credit scores in the tier above — super-prime (781 to 850) — take out the most for used cars, $27,860, down from $28,079 last quarter.

Average auto loan amounts by credit score range

Source: Experian State of the Automotive Finance Market, Q3 2024.

Americans owe $1.644 trillion in auto loan debt

Overall vehicle debt has increased by 76.0% between Q3 2014 ($934 billion) and Q3 2024 ($1.644 trillion), according to the Federal Reserve Bank of New York.

In those 10 years, the only dip came in Q2 2020 — the first full quarter amid the pandemic.

Outstanding auto debt

Source: New York Fed Consumer Credit Panel/Equifax data.

Auto loans account for 9.2% of American consumer debt

While mortgages take the lion’s share of American consumer debt at 70.2% — according to the New York Fed — auto loans account for 9.2%. Auto loan debt ($1.644 trillion) is ahead of student loan debt ($1.606 trillion) as of Q3 2024.

Americans borrow $184.2 billion in third quarter of 2024

Americans took out $132.6 billion in auto loans in Q3 2014. Ten years later in Q3 2024, they borrowed far more: $184.2 billion, according to the New York Fed.

Here’s a quarterly look during this period:

Quarterly volume of auto loan originations

Source: New York Fed Consumer Credit Panel/Equifax data.

Americans in their 30s and 40s take out biggest auto loans

Americans in their 30s and 40s took out the largest auto loans in Q3 2024, according to the New York Fed, borrowing $40.1 billion and $40.8 billion, respectively.

Those in their 50s borrowed billions less ($34.9 billion), and those in their 60s borrowed $23.0 billion. Young adults 18 to 29 borrowed more ($27.2 billion) than consumers in their 60s.

When combined, Americans younger than 50 took out $108.1 billion in auto debt in Q3 2024. That compares with $70.6 billion for those 50 and older.

Americans with highest credit scores take out biggest auto loans

Meanwhile, those with the best credit scores borrow the most. In Q3 2024, borrowers with credit scores of at least 720 took out $97.6 billion in auto loan debt. The remaining credit tiers accounted for $86.7 billion combined, according to the New York Fed.

Auto loan originations by credit score

Source: New York Fed Consumer Credit Panel/Equifax data.

Average auto loan term shows it’s taking time to pay back these loans

The average auto loan term for new vehicles is 68.2 months, or less than six years, according to Experian. Used car loans, despite being significantly smaller on average, are close behind at 67.2 months.

Average term lengths by credit score range

Source: Experian State of the Automotive Finance Market, Q3 2024.

But auto loans for new vehicles are stretching even longer — topping six years — for nonprime borrowers. Middle-tier credit borrowers with scores of 601 to 660 take out the longest new car loans, at an average of 74.3 months. Top-tier credit borrowers with scores of 781 to 850 have the shortest average new car loan term, at 63.8 months.

“That’s such a long time to be stuck paying for a depreciating asset,” LendingTree chief credit analyst Matt Schulz says. “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. Yes, our vehicles are important. In much of the country, you can’t get around without one. And, yes, we love fancy new cars, even new-to-us cars. They’re fun to drive and show off. However, once that initial glow wears off and you’re still making a big monthly payment on that vehicle after five-plus years, it may not seem worth it.”

The average new car lease term is 35.7 months.

Auto loan delinquency rates still below peaks

According to data from the New York Fed, 90-day delinquency rates on auto loans peaked in Q4 2010 at 5.3%, dropping to 4.6% as of Q3 2024.

Meanwhile, the percentage of auto loans that fell to 30 days past due spiked to 10.9% back in Q2 2009. Dating to 2011, it remained at or below 8.0% until topping that in Q3 2024 (8.1%).

Buyers turn to banks and credit unions the most for auto financing

As of Q3 2024, banks hold the highest market share, at 28.7%, followed by credit unions at 23.7% and captive lenders (manufacturers’ financing arms) at 21.9%.

“Buy-here, pay-here” businesses, often known for predatory lending practices, capture up to 15.6% of the used car financing market. In the used car arena, captive lenders only claim 8.2%.

Schulz warns that buy-here, pay-here loans are dangerous. Not only can the sticker price be bigger, but the interest rates can look more like credit card rates than typical auto loan rates, and there may be extra fees. There may be an unusual payment schedule requiring you to pay more often than the typical monthly payment. Some places might even require you to put a tracking device on the car to make it easier to take back if you fall behind on payments.

In short, these should be among the last options you’d consider — but your credit score plays a role in what options are available to you.

“Good credit means more good options, and that’s a big deal,” Schulz says. “You must shop around. If you finance through the car seller, you’re very likely to overpay. Use sites to compare auto loan offers easily. You could also visit multiple lenders online on your own — consider looking at credit unions if you do. Once you’ve found a deal you’re happy with, get preapproved by the lender. That preapproval gives you leverage over the car seller because they know you won’t be happy with a bad offer.”

Sources

• Experian
• U.S. Bureau of Labor Statistics
• Federal Reserve Bank of New York
• LendingTree