The average car payment for new vehicles was $745 per month in the first quarter of 2025, up 1.1% from Q1 2024. Meanwhile, average car payments for used and leased vehicles decreased by 0.6% and 0.5%, respectively, over the same period.
LendingTree looked at payments, originations, term lengths, delinquencies and more to get a full picture of U.S. auto loan debt and trends. Here’s our 2025 roundup of auto loan statistics.
Buying a new car is an exciting experience But it also comes with the responsibility of making monthly car payments, which can put a dent in your budget if you aren’t prepared. So what is the average monthly car payment in America? And what factors determine how much you’ll be paying each month for your new wheels?
The Average Monthly Car Payment
According to Experian, the average monthly car payment in America as of Q1 2025 is:
- $745 for new cars
- $521 for used cars
These averages are up slightly from 2024, when the typical monthly car payment was $737 for a new vehicle and $524 for a used vehicle.
So if you’re planning to buy a new car budgeting around $745 per month for your car payment is a good starting point. But keep in mind, your specific monthly payment could be higher or lower depending on your loan amount interest rate, and other factors.
What Determines Your Monthly Car Payment?
There are a few key factors that determine what your monthly car payment will be
1. Loan Amount
The loan amount is the total amount you borrow to pay for the car. It’s based on the car’s sale price minus any down payment or trade-in credit you put toward the purchase.
The average loan amount in Q1 2025 was $41,720 for a new car and $26,144 for a used car.
2. Interest Rate
Interest is the fee a lender charges to borrow money, stated as a percentage rate. The higher the interest rate, the more extra money you’ll pay in interest charges each month.
Interest rates are based on your credit score and history. In Q1 2025, average interest rates were:
- New cars: 6.73%
- Used cars: 11.87%
So buyers with good credit scores can expect lower interest rates, while those with poor credit will pay higher rates.
3. Loan Term
The loan term is the number of months you have to repay the loan. Common terms are 24, 36, 48, 60, 72, and 84 months.
Longer terms (like 72-84 months) mean lower monthly payments but more interest paid over the life of the loan. Shorter terms have higher payments but cost less overall.
- Average term for new cars: 68.63 months
- Average term for used cars: 67.22 months
How Your Credit Score Affects Your Payment
Your credit score plays a big role in determining your interest rate, so it also affects your monthly payment. Buyers with the highest credit scores get the lowest rates, while those with poor credit pay the most.
Here are the average monthly payments by credit score tier in Q1 2025:
| Credit Score | Average Payment, New Car | Average Payment, Used Car |
|---|---|---|
| 781-850 (Superprime) | $727 | $523 |
| 661-780 (Prime) | $753 | $510 |
| 601-660 (Nonprime) | $784 | $527 |
| 501-600 (Subprime) | $762 | $533 |
| 300-500 (Deep Subprime) | $736 | $532 |
So if your credit score is low, improving it before car shopping could significantly lower your payment. Getting pre-approved for financing can also help you secure a better rate.
Estimating Your Monthly Payment
While national averages provide a good benchmark, your actual monthly payment will depend on your specific loan details. Factors like where you live and the type of vehicle you select will also impact the rate a lender offers.
The best way to estimate your payment is to use an auto loan calculator. Input your actual numbers for the car price, down payment, loan amount, interest rate, taxes and fees. This will give you a personalized estimate, so you can budget accurately and shop different auto loans.
Aim to keep your monthly car payment under 10% of your take-home income, if possible. And shop around, because getting quotes from multiple lenders can help you find the best rate for your situation.
Recent Auto Loan Trends
In addition to rising monthly payments and loan amounts, here are some other notable trends in the auto lending market:
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New car purchases increased in Q3 2024 while used car purchases remained flat, likely due to limited used car inventory driving up prices.
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Auto loan delinquencies are up, indicating more borrowers are struggling with payments. Delinquencies rose most among younger buyers.
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Superprime and prime borrowers saw APR decreases, while rates rose for all other credit tiers.
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Loan terms are getting longer, averaging close to 70 months for both new and used cars. Longer loans cost more in interest but have lower monthly payments.
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Captive lenders (like the automaker’s financing arm) gain more new car loan market share as they offer incentives like 0% APR deals.
The Takeaway
While the average car payment is around $745/month for a new vehicle, your personal auto loan payment will depend on several factors like your loan amount, credit, and loan term. Use online tools to estimate your payment, shop multiple lenders to compare loan offers, and aim to keep your payment under 10% of monthly income. This will ensure you get the best auto financing for your budget.
Americans with highest credit scores take out biggest auto loans
Meanwhile, those with the best credit scores borrow the most. In Q1 2025, borrowers with credit scores of at least 720 took out $92.9 billion in auto loan debt. The remaining credit tiers accounted for $72.6 billion combined, according to the New York Fed.
Auto loan originations by credit score
| Quarter | Less than 620 | 620 to 659 | 660 to 719 | 720 to 759 | 760+ |
|---|---|---|---|---|---|
| Q1 2024 | $26.2 billion | $15.8 billion | $34.3 billion | $25.6 billion | $63.6 billion |
| Q2 2024 | $30.0 billion | $18.7 billion | $36.6 billion | $28.3 billion | $65.6 billion |
| Q3 2024 | $31.2 billion | $18.2 billion | $37.3 billion | $28.6 billion | $69.0 billion |
| Q4 2024 | $28.3 billion | $17.2 billion | $36.2 billion | $27.7 billion | $65.7 billion |
| Q1 2025 | $25.7 billion | $14.0 billion | $32.9 billion | $24.8 billion | $68.1 billion |
Average auto loan amounts for new vehicles remain above $41,000
Average auto loan amounts reached $41,720 for new vehicles and $26,144 for used vehicles in Q1 2025, according to Experian. New vehicle loan amounts rose from an average of $41,572 in the prior quarter, while used vehicle loan amounts dipped from $26,468.
New car buyers in the prime credit tier (661 to 780) take out the largest loans — $44,082, on average. Borrowers with credit scores in the tier above — super-prime (781 to 850) — take out the most for used cars, $28,532, down from $28,712 the prior quarter.
Average auto loan amounts by credit score range
| Credit score range | New vehicles | Used vehicles |
|---|---|---|
| All | $41,720 | $26,144 |
| 781 to 850 | $39,854 | $28,532 |
| 661 to 780 | $44,082 | $27,491 |
| 601 to 660 | $43,883 | $25,010 |
| 501 to 600 | $38,851 | $21,683 |
| 300 to 500 | $34,762 | $19,892 |
America’s Car Payment Epidemic in 2025
FAQ
What is the average Americans monthly car payment?
Average monthly car payments for new vehicles increase slightly year over year. The average car payment for a new vehicle is $745 monthly, according to Q1 2025 Experian data — up 1.1% year over year. Used cars have an average monthly payment of $521, down 0.6% over the same period.
How much is a $30,000 car payment for 60 months?
Is $600 a month a lot for a car?
How much does the average American pay for a vehicle?
What Is the Annual Cost of Ownership of a Car? The average annual cost of car ownership is $12,297, or $1,025 per month.