Ninety-day delinquency rates on auto loans peaked in the fourth quarter of 2010 at 5.3%, dropping to 4.0% as of the fourth quarter of 2021. Auto loan delinquency rates continue to drop from peaks The average new car lease term is 36.8 months, or about three years. Top credit score borrowers have the lowest average loan terms at 64.3 months. Middle-tier credit borrowers take out the longest car loans, an average loan of 74.3 months. Source: Experian State of the Automotive Finance Market, Q4 2021īut auto loans are stretching even longer - topping six years - for nonprime borrowers. Borrowers with credit scores in the tier above - prime (661 to 780) - take out the most for used cars, $29,065, which is considerably above how much they borrowed last year ($22,708).Īverage term lengths by credit score range (in months) New car buyers in the nonprime/fair credit tier (601 to 660) have the largest loans - $41,843, on average. Average auto loan amounts near $40,000 for new vehiclesĪverage auto loan amounts have steadily increased in the past decade, reaching $39,721 for new vehicles and $27,291 for used vehicles. The used car market is no friendlier to consumers, as used car prices rose by 40.5%. In January 2022, most new vehicles sold for more than their manufacturer’s suggested recommended price (MSRP) - in particular, select luxury brands commanded thousands more. The coronavirus pandemic caused factory shutdowns and supply chain shortages, dwindling the vehicle supply even as demand recovered quickly. The 11.8% hike in the average new car payment is nearly identical to the new vehicle price increase of 12.2%. Increase in new car payments similar to hike in new vehicle prices You can use the LendingTree auto loan calculator to estimate your monthly car payments. Bureau of Labor Statistics, Federal Reserve Bank of New York, Edmunds, Consumer Financial Protection Bureau Borrowers with 661-plus scores account for 65.2% of retail vehicle financing, versus 16.0% for subprime borrowers.
On average, Americans take out more than $60 billion in new auto loans each month.
Overall, Americans owe $1.46 trillion in auto loan debt, accounting for 9.4% of American consumer debt. Auto loan debt is the third-largest debt category behind mortgages and student loans.To pay for this, Americans borrow an average of $39,721 for new vehicles and $27,291 for used vehicles. New vehicle prices are up 12.2% year over year, but used car and truck prices are up substantially more at 40.5%. The double-digit increases continue with vehicle prices.The jumps were 11.8% for new vehicles, 18.2% for used vehicles and 15.4% for leased vehicles, putting average monthly car payments at $644, $488 and $531, respectively. increased year over year by double-digit percentages. Auto loan statistics 2022: Average car payments to financing by credit score Here’s our 2022 roundup of auto loan statistics. auto loan debt and trends, LendingTree looked at payments, originations, term lengths, delinquencies and more. Not to be outdone, average car payments for used and leased vehicles are rising at even higher levels. The average car payment for new vehicles is a record-high $644, a double-digit percentage increase from the prior year.
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