Did you know that the typical automobile loan payment in the United States is more than $550 per month, and that total auto loan debt in the country has reached more than $1.1 trillion?
But it's not only the monthly payment that drains our finances; you are still going to need the best car insurance policy you can get and new automobiles quickly depreciate by 20% or more after they're driven off the lot.
In this post we'll look at the cost of the typical automobile payment in the United States for both new and used vehicles as well as other auto facts in this blog post.
Top Auto Loan Statistics In The United States (2023):
Average Car Payments In The United States
How Much Is The Average Car Payment In America?
The average monthly vehicle payment in the United States is $575 for new cars and $430 for used cars as of 2021.
What Is The Average New Car Payment In The U.S.?
The average monthly cost in the United States for new automobiles is $550.
What Is The Average Used Car Payment In America?
The average cost of a used automobile in the United States is $393 per month.
What Percentage Of Cars On The Road Are Paid For?
According to recent automotive loan data, the majority of new automobiles on the road right now have been financed through a lease or a loan - 85%, which is similar to previous years. However, more used cars were financed: 55.5% compared to 54% in 2018.
Average Monthly Auto Loan Payments By State
The state of Louisiana has the highest average monthly auto loan payment of $596 per month for a new car and New Hampshire has the the lowest monthly auto payment for a new car at $487 per month. The state of Louisiana also has the highest auto payment for used cars at $393 per month and Montana has the lowest auto payments for used cars at around $289 per month.
New Car (Monthly Payment)
Used Car (Monthly Payment)
District of Columbia
High Auto Loan Payments Could Mean High Car Insurance Rates
Based on our internal data, states with higher auto loan payments also seem to have higher car insurance premiums. For instance, Louisiana and Michigan have both high auto loan payments and insurance premiums. This may suggest that states with overall higher costs of living and vehicular expenses tend to have higher costs across all aspects of car ownership.
American Auto Debt Statistics (2022)
How Much Do Americans Owe In Auto Loan Debt?
At the start of 2020, automobile loan debt in the United States reached $1.18 trillion.
How Much Debt Do Americans Take Out On Auto Loans Per Month?
Every month, more than 2 million Americans take out new automobile loans worth around $56 billion.
What Is The Average Loan Amount For New Vehicles In America?
On average, consumers borrow $34,635 for a new automobile.
What Is The Average Loan Length For New Cars In America?
The average loan term for new automobiles is 69 months, and according to studies, 4.5 percent of outstanding automobile debt is 90 days late, while 7% is 30 days past due.
What Is The Average Loan Amount For Used Cars In America?
Consumers borrow about $21,500 for used vehicles.
What Is The Average Loan Length For Used Cars In America?
Used automobiles generally have a loan duration of 35 months.
Car Lease Statistics In America
What Is The Average Leased Vehicle Payment In The United States?
The average monthly cost of a leased vehicle in the United States is $452.
What Is The Average Loan Length For Leased Cars In America?
The average loan length on a leased vehicle is 37 months in the U.S.
What Percentage Of Cars On The Road Are Leased?
In 2020, the percentage of all new cars sold on lease fell to 27%, down from 31% in 2019. Lease payments have increased for nearly all customers, with the exception of those in the prime and super-prime categories, who saw their lease payments decrease in 2020.
General Car Loan Statistics In America
What Generation Has the Highest Auto Loan Debt?
Generation X has the highest probability of taking out a vehicle loan and paying the most in debt, with an average of $19,313.
How Much Is The Average Car Interest Rate (APR)?
The average annual percentage rate for auto loans in 2019 was 8.06%. On a yearly basis, this proportion varied from 5.66% for customers with excellent credit to 21.54% for customers with bad credit.
Monthly car payments are on the rise in the United States. The average car payment in America has gone up to $575 per month, with some people even paying more than that!
It was also shocking to see that if your state has high auto loans it will probably have high insurance premiums. This means that lowering bills (such as your car insurance rates) is critical if you want to pay your vehicle loan off much faster.
And while $1.18 Trillion in auto loan debt is a big and scary number I think over time we will be able to tackle this debt.