The average car payment in the U.S.
has increased by nearly 40% over the past 5 years, reflecting the rising costs of new and used vehicles.
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The average monthly payment for a new vehicle is now $735, while for a used vehicle it is $523, according to Q1 2024 data.
A record 17% of Americans are now paying $1,000 or more per month for their car loans, a significant jump from just 10% five years ago.
The average monthly payment for a new, leased vehicle is $586, compared to $725 for a new, purchased vehicle.
The Midwest region has the lowest average car payment at $673 per month, while the West Coast has the highest at $798 per month.
Millennials have the highest average car payment at $798 per month, compared to $688 for Gen X and $602 for Baby Boomers.
The average loan term for a new vehicle purchase has increased from 66 months in 2019 to 70 months in 2024, as consumers seek to lower their monthly costs.
Electric vehicles have the highest average monthly payment at $875, due to their higher sticker prices and specialty financing options.
The average down payment for a new vehicle purchase has decreased from 12% in 2019 to just 9% in 2024, as consumers prioritize lower monthly costs.
Pickup trucks have the highest average payment at $810 per month, while subcompact cars have the lowest at $585 per month.
The average interest rate on new vehicle loans has risen from 4.9% in 2019 to 6.2% in 2024, as the Federal Reserve has continued to raise interest rates.
Consumers in the highest income brackets (over $100,000 annually) have the highest average car payment at $925 per month.
The average car payment for households with a credit score below 600 is $835 per month, compared to $675 for those with a credit score above 700.
The average monthly car payment for a new SUV is $785, while for a new sedan it is $695, reflecting the growing consumer preference for larger, more expensive vehicles.
The average monthly payment for a new luxury vehicle is $1,125, compared to $685 for a non-luxury vehicle, highlighting the widening gap between affordable and premium models.
The average car payment for consumers who finance through a dealer-arranged loan is $765 per month, compared to $695 for those who use a bank or credit union.
The average monthly payment for a new vehicle with all-wheel drive is $785, $50 more than the average for front-wheel or rear-wheel drive models.
The average car payment for consumers living in urban areas is $765 per month, compared to $685 for those in rural areas, possibly due to higher insurance costs and traffic congestion in cities.
The average car payment for consumers who trade in their previous vehicle is $715 per month, compared to $785 for those who do not have a trade-in.
The average monthly car payment for a new vehicle with advanced safety features, such as autonomous emergency braking and lane-keeping assist, is $810, $75 more than the average for vehicles without these technologies.