Car Loan Statistics By Credit Score and Facts
Joseph D'Souza
Updated · Mar 10, 2025
TABLE OF CONTENTS
Introduction
Car Loan Statistics: The market for customer vehicles in the US has grown in cost and volume over the last few years. Car loan statistics show that with the minimum car loan being more attainable to adults of all generations, the second wave of robotization is growing. Topographical locations are not a significant factor that impacts the average car loan negligence rates, interest rates, and payments.
Preferably, they are intended by the driver’s credit score, history, debts, loan amount, term, and income. Over the years the auto negligence rates have increased. They are currently standing at a high level. Based on vehicle type, the market can be divided into SUVs, hatchbacks, and sedans.
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- In 2020, people borrowed about USD 22,568 for the used vehicles and USD 32,480 for the new cars.
- In 2020, Auto loan negligence rates were highest in Mississippi at 5.7%.
- Experian said an average auto loan amount reached USD40,184 for brand-new vehicles and USD 27,167 for used cars in 2023.
- Auto loans account for 9.2% of the customer‘s debt from the United States.
- In the third quarter of 2023, America borrowed more than USD 59.8 billion per month.
- In 2020, Kuwy launched an end-to-end digital learning platform for selling cars online.
- As per Experian’s State of the Automotive Finance Market. The average new car loan payment credit score is USD 729 every month.
- The typical car loan is USD 36,99 for those with deep surpass credit.
- As per 2023 data, about 60% of the new car loans are taken out for SUVs or wagons compared to sedans and pickup trucks.
- Only 23.6% of the car borrowers with credit scores that were prime or better leased in 2023.
- In 2023, like new vehicles, the average decreased demand for used cars from USD 26,863.
- As of the third quarter of 2023, drivers owed USD 1.51 trillion on cars, motorcycles, and other personal vehicles.
- The average monthly payment for new car loans grew to USD 716 in 2023.
- Generation X has the highest car loan balance of USD 18741.
- The Honda Civic is the most popular car for leasing.
- Americans owe almost USD 1.18 trillion in auto loans.
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General Car Loan Statistics
- In the first quarter of 2022, the monthly payment for a super prime car lease in the United States was around USD 505 and increased significantly in the preceding years.
- Most auto loans were shared equally across all age groups, and the maximum number of loans taken was between 30 and 40 years in 2022.
- The typical term loan for a brand-new car in American finance organizations was over 66 months in 2022. And that exceeded 71 months in the next quarter.
- The interest rates for auto loans in the United States have gained over the past years, reaching 6% in November 2022.
- In 2020, medium-sized organizations in France used short leasing with the chance to purchase vehicles at around 35%.
- In France, long-term leasing is a prevalent form of financing businesses.
- In the fourth quarter of 2021, the Porsche Taycan had the highest loan payment for electric vehicles in the U.S., followed by the Audi e-tron G.T.
- Only 23% intend to pay in cash; most Poles plan to finance the purchase of electric vehicles with external financing.
- Americans between 18 and 29 years old had the highest share of the auto loan in the severe negligence.
Average Car Loan Payment to Financing By Credit Score
- Per Experian, the credit score was 3.6% for the new vehicles and 4.6% for the leased cars, according to the third quarter of 2023.
- An increase of 0.8% had put monthly car payments at %726, USD 597, and USD 533.
- Americans have taken about USD 59.8 billion in new car loans every month.
- Experian says the car loan term is 68.3 months for new cars, about 67.6 months for used cars, and 36.2 months for leased vehicles.
- As per the U.S. Bureau of Labor Statistics, in October 2023, the cost of the new vehicle increased by 1.9% per the consumer price index.
- Experian’s survey shows Americans borrow almost USD 40.184 for new cars and USD 27,167 for used vehicles.
- Car loan debt is the third-largest category after mortgages and nearly equal to student loans.
- As per the Federal Reserve Bank of New York, Americans owe USD 1.595 trillion in car loan debt.
- According to the New York Fed, Americans younger than 50 have taken out USD 36.6 billion in car debt every month in 2023.
- As per the New York Fed, about 3.9% of the outstanding car debt was 90 days late in 2023.
- As per Experian, borrowers with a credit score of 661 or more for retail vehicle financing.
New Car Loan Statistics
- About 60% of new car loans that were taken out during the 2nd quarter of 2023 comprised cars, SUVs or wagons, and pickup trucks with 17% and 18%, respectively.
- In 2022, big automobiles came with expensive prices, and the rate of rising costs for driving grew as the new vehicle’s worth was 38,957 dollars.
- The loan’s average term grew between 69.8 months at the end of 2022, to 68.1 months in 2023.
| Credit Score | New Car Loan Average Monthly Payment | Used Car Loan Average Monthly Payment |
|---|---|---|
| Superprime | $694 | $508 |
| Prime | $736 | $523 |
| Nonprime | $769 | $542 |
| Subprime | $767 | $543 |
| Deep subprime | $744 | $523 |
(Source: smarketwatch.com)
- The financing of a new vehicle was paid at an average rate of 4.6% in 2022. It was raised to 6.6% by 2023.
Car Payment Statistics
- According to Experian the cost of a monthly installment for new vehicles is USD 726.
- According to Experian, the monthly cost for cars used is USD 533.
- According to Cox Automotive’s survey new car will cost you USD 48,247.
- Experian reports that the average time to pay for a new vehicle will be 68.26 months.
- The interest rate for new vehicles is 7.03%.
- Experian states that the loan period for second-hand cars will be 67.57 months.
- On average, motorists make an initial down payment of USD 4111 for used cars.
Australian Car Loan Statistics
- As per Finder’s Consumer Sentiment Tracker, over 11,000 respondents, around 12% of Australians, have a car loan from January 2023 to November 2023.
- Nearly 9% of Australians have an opinion about taking a car loan to purchase a vehicle at some point.
- As per Finder’s Consumer Sentiment Tracker survey, Australians carry roughly USD 11,987 for their car loan in 2023.
- ABS says that new vehicle lending will be USD 1.4 billion in October 2023, increasing from USD 1.1 billion the previous year.
- Millennials are famous customers for car loans, with a quarter of people in the age group 20% currently paying vehicle installments.
- Baby boomers have car loans, with only 2% currently paying off the vehicle.
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(Reference: finder.com)
- As per the Bureau of Infrastructure and Transport Research Economics. About 15,327,612 vehicles are registered presently.
- The FCAI’s research shows that 1,118,236 new cars were sold in Australia from January to November 2023.
- Sports cars / SUVs were in massive demand, with around 56% in 2023, and about 627,187 new SUVs were sold.
- Light commercial vehicles are prevalent in Australia, with 22% of the share in 2023 and about 248,546 cars sold.
- As per Finder, most car loan customers believe in getting a good value for money on the current loan product.
Car Loan Statistics By Age
- As per the Annual update for controllers, Generation Xers are the most likely to get a car loan.
- Gen X has a high car loan balance, with a median of $19,313.
- In 2021, car loans comprised nearly 18% of the total consumer debt for 18 to 29 years.
- In 2021, car loans comprised 10% of the customers’ 30- to 39-year-old debt.
- In 2021, car loans comprised nearly 9% of total consumer debt for 40 to 49 years, 50 to 59 years, and 60 to 69 years.
- Almost 2.9% of borrowers’ combined car loan balances between 18 and 29 were transferred into negligence.
- Lenders between 50 and 59 years saw a low amount of loans.
Conclusion
Knowing car loan statistics and trends can make navigating the world of car loans easier. It’s important to realize one’s financial state, the present trend in interest rates, lengths of car loans, and loan amounts before deciding. Finally, it takes time to make choices if you are a first-time buyer looking forward to upgrading your current vehicle and understanding the car loan statistics. Even though available rates for vehicle financing are affected by many outside factors, there are still choices to put in the driver’s seat at the time of a big purchase. Currently, the interest rate will be monthly payable and also more expensive.
Sources
Joseph D'Souza
Joseph D'Souza started Coolest Gadgets in 2005 to share his love for tech gadgets. It has since become a popular tech blog, famous for detailed gadget's reviews and companies statistics. Joseph is committed to providing clear, well-researched content, making tech easy to understand for everyone. Coolest Gadgets is a trusted source for tech news, loved by both tech fans and beginners.
