Average Car Payment and Auto Loan Statistics 2023
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The average car payment for new vehicles was a record-high $725 in the first quarter of 2023, an 11.5% increase from the first quarter of 2022. The average car payment for leased vehicles increased at a comparable 11.2%. However, the increase in the average car payment for used vehicles was just 2.2%.
To get a full picture of U.S. auto loan debt and trends, LendingTree looked at payments, originations, term lengths, delinquencies and more. Here’s our 2023 roundup of auto loan statistics.
On this page
- Key findings
- Average monthly car payments
- Vehicle prices
- Average auto loan amounts
- Auto loan debt
- Auto loans as a percentage of American consumer debt
- Monthly volume of auto loan originations
- Auto loan originations by borrower age
- Auto loan originations by credit score
- Average auto loan terms
- Auto loan delinquency rates
- Types of lenders financing auto loans
- Sources
Auto loan statistics 2023: Average car payments to financing by credit score
- Average car payments for new and leased vehicles in the U.S. increased year over year by double-digit percentages. The jumps were 11.5% for new vehicles and 11.2% for leased vehicles, according to first-quarter 2023 data from Experian. The increase in the average car payment for used vehicles was significantly smaller, at 2.2%. That puts average monthly car payments at $725, $586 and $516, respectively.
- Increases in new vehicle prices aren’t as severe. New vehicle prices are up 4.7% year over year, according to the May 2023 U.S. Bureau of Labor Statistics (BLS) consumer price index, but used car and truck prices are down 4.2%. Americans borrow an average of $40,851 for new vehicles and $26,420 for used vehicles, according to Experian.
- Auto loan debt is the third-largest debt category behind mortgages and student loans. Overall, Americans owe $1.56 trillion in auto loan debt, according to the Federal Reserve Bank of New York, accounting for 9.2% of American consumer debt.
- On average, Americans take out $53.9 billion in new auto loans each month this year. By age, Americans younger than 50 take out $32.3 billion in auto debt monthly, according to the New York Fed, compared with $20.6 billion by those 50 and older.
- Americans are taking many years to pay back their auto loans. The average auto loan term is 68.6 months for new cars, 67.4 months for used cars and 35.3 months for leased vehicles, according to Experian.
- Auto loan delinquency rates continue to drop across the board. 3.9% of outstanding auto debt is at least 90 days late — down from 5.3% in 2010 — while another 6.9% are 30 days overdue. That’s a 34.9% year-over-year increase, according to the New York Fed.
- Borrowers with prime credit scores are responsible for the majority of retail vehicle financing. Borrowers with credit scores of 661 and higher account for 64.5% of retail vehicle financing, according to Experian, versus 17.3% for subprime borrowers.
Average monthly car payments for new, new leased and used vehicles jump year over year
The average car payment for a new vehicle is $725 monthly, according to first-quarter 2023 data from Experian — up 11.5% year over year. Meanwhile, new lease payments average $586 (up 11.2%). With the lowest jump at 2.2%, used cars have the lowest average monthly payments at $516.
Annual changes in average monthly car payments
| 2022 payments | 2023 payments | Difference ($) | Difference (%) | |
|---|---|---|---|---|
| New vehicles | $650 | $725 | $75 | 11.5% |
| New leased vehicles | $527 | $586 | $59 | 11.2% |
| Used vehicles | $505 | $516 | $11 | 2.2% |
Source: Experian State of the Automotive Finance Market, Q1 2022 and Q1 2023
Those with credit scores of 601 to 660, in the nonprime or fair range, saw the highest average monthly payments for new vehicles at $765.
Average monthly payments by credit score range
| New vehicles | Used vehicles | New leased vehicles | |
|---|---|---|---|
| All | $725 | $516 | $586 |
| 781 to 850 (super prime) | $693 | $502 | $571 |
| 661 to 780 (prime) | $733 | $511 | $590 |
| 601 to 660 (nonprime) | $765 | $529 | $605 |
| 501 to 600 (subprime) | $761 | $527 | $612 |
| 300 to 500 (deep subprime) | $711 | $508 | N/A |
Source: Experian State of the Automotive Finance Market, Q1 2023
You can use the LendingTree auto loan calculator to estimate your monthly car payments.
Increase in new car payments higher than hike in new vehicle prices
The 11.5% hike in the average new car payment is nearly 7 percentage points higher than the new vehicle price increase of 4.7%, according to the May 2023 BLS consumer price index. The COVID-19 pandemic caused factory shutdowns and supply chain shortages, dwindling the vehicle supply even as demand recovered quickly. Then inflation skyrocketed to a 40-year high, causing more pain for consumers.
The used car market is friendlier to consumers, as used car prices are down by 4.2% — a significant decline from January 2021 to January 2022, when used car prices spiked 40.5%.
Average auto loan amounts near $41,000 for new vehicles
Average auto loan amounts have steadily increased in the past decade, reaching $40,851 for new vehicles and $26,420 for used vehicles in the first quarter of 2023, according to Experian.
New car buyers in the nonprime/fair credit tier (601 to 660) take out the largest loans — $43,780, on average. Borrowers with credit scores in the tier above — prime (661 to 780) — take out the most for used cars, $28,056, which is lower than last quarter ($29,405).
Average auto loan amounts by credit score range
| New vehicles | Used vehicles | |
|---|---|---|
| All | $40,851 | $26,420 |
| 781 to 850 | $37,185 | $27,306 |
| 661 to 780 | $42,573 | $28,056 |
| 601 to 660 | $43,780 | $26,069 |
| 501 to 600 | $40,682 | $22,193 |
| 300 to 500 | $35,297 | $19,162 |
Source: Experian State of the Automotive Finance Market, Q1 2023
Americans owe $1.56 trillion in auto loan debt
Overall vehicle debt nearly doubled between the first quarter of 2013 ($794 billion) and the first quarter of 2023 ($1.56 trillion), according to the Federal Reserve Bank of New York.
In these 10 years, the only dip came in the second quarter of 2020 — the first full quarter amid the pandemic. That quarter, Americans owed $1.34 trillion, down from $1.35 trillion the prior quarter.
Auto loans account for 9.2% of American consumer debt
While mortgages take the lion’s share of American consumer debt at 70.7% — according to the New York Fed — auto loans account for 9.2%, just below student loan debt at 9.4%.
Americans borrow almost $54 billion a month in auto loans
Looking back 10 years ago, in the first quarter of 2013, Americans took out $33.1 billion a month in auto loans. Today, in 2023, they borrow far more: $53.9 billion a month, according to the New York Fed.
Americans in their 30s, 40s take out biggest auto loans
Americans in their 30s and 40s took out the largest auto loans in the first quarter of 2023, according to the New York Fed, borrowing $37.0 billion and $36.5 billion, respectively.
Those in their 50s borrowed about $5 billion less ($32.0 billion), followed by young adults ages 18 to 29, who borrowed $23.4 billion. The oldest generations borrowed the least.
When you break it down monthly over that first quarter of 2023, Americans younger than 50 took out $32.3 billion in auto debt monthly. This compares with $20.6 billion by 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 the first quarter of 2023, borrowers with credit scores of at least 720 took out $87.0 billion in auto loan debt. The remaining credit tiers accounted for $74.6 billion combined, according to the New York Fed.
Auto loan originations by credit score ($ billions)
| Less than 620 | 620 to 659 | 660 to 719 | 720 to 759 | 760+ | |
|---|---|---|---|---|---|
| Q2 2002 | $35.4 | $23.7 | $44.7 | $29.8 | $65.3 |
| Q3 2022 | $30.3 | $21.3 | $40.8 | $30.6 | $62.4 |
| Q4 2022 | $28.5 | $20.8 | $44.3 | $30.2 | $62.4 |
| Q1 2023 | $23.4 | $16.3 | $34.9 | $27.5 | $59.5 |
Source: Federal Reserve Bank of New York
The median credit score of auto loan borrowers when they originated a loan has been above 674 since 2005.
Average auto loan term shows it’s taking time to pay back these loans
The average auto loan term for new vehicles is 68.6 months, or less than six years, according to Experian. Used car loans, despite being significantly smaller on average, are close behind at 67.4 months.
Average term lengths by credit score range (in months)
| New vehicle loans | Used vehicle loans | New leased vehicles | |
|---|---|---|---|
| All | 68.6 | 67.4 | 35.3 |
| 781 to 850 | 62.7 | 65.0 | 34.8 |
| 661 to 780 | 70.6 | 68.6 | 35.4 |
| 601 to 660 | 74.4 | 68.4 | 36.8 |
| 501 to 600 | 73.9 | 65.7 | 35.8 |
| 300 to 500 | 72.7 | 61.8 | N/A |
Source: Experian State of the Automotive Finance Market, Q1 2023
But auto loans are stretching even longer — topping six years — for nonprime borrowers. Middle-tier credit borrowers take out the longest car loans, an average loan of 74.4 months. Top credit score borrowers have the lowest average loan terms at 62.7 months.
The average new car lease term is 35.3 months, or about three years.
Auto loan delinquency rates continue to drop from peaks
According to data from the New York Fed, 90-day delinquency rates on auto loans peaked in the fourth quarter of 2010 at 5.3%, dropping to 3.9% as of the first quarter of 2023.
Meanwhile, 30-day delinquencies spiked to 10.9% in the second quarter of 2009 —however, they’ve stayed below 8.0% since 2011 and have decreased to 6.9% in the first quarter of 2023.
Buyers turn to credit unions and captive lenders the most for auto financing
In 2020, captive lenders almost surpassed banks in auto finance market share. As of the first quarter of 2023, they currently hold the highest market share at 26.6%. Banks follow closely behind at 26.0%, with credit unions at 24.5%.
“Buy-here, pay-here” businesses, often known for predatory lending practices, capture 17.1% of the used car financing market. In this arena, captive lenders only claim 8.6%.
Sources
- Experian
- U.S. Bureau of Labor Statistics
- Federal Reserve Bank of New York