Car Loan Statistics That Will Make You Want a Bicycle
Our lives are measured in automobiles. From the clunkers we save for in high school to the shiny sedans we drive nervously off the lot after a promotion, each defines an era, a stage in life. Road trips, vacations, commutes, back seats full of kids, the truth is that the American life happens on wheels.
Like the automobile, debt is also an essential part of American life. Student loans, insurance payments, mortgages - and yes, car loans. We lease. We borrow, and find our place on America’s mountain of consumer debt. But hey - how else would we get where we need to go?
Key Car Loan Statistics for 2025 - Editor’s Choice
- Americans currently owe more than $1.64 trillion on their cars.
- 18.9% of borrowers pay more than $1,000 in monthly car payments in 2025.
- More than 80% of new cars were financed in 2024.
- Car loans represented a 9.16% of total consumer debt in the US in 2024, secon only to mortgages.
- The average monthly payment for a car is $754.
Americans owed more than $1.64 trillion in auto loans in 2024.
(Experian)
Every year the automotive industry sets a new collective debt record and last year was no different. Compared to the same period in 2023, the total auto loan debt has increased by $37 billion.
Total auto debt increased by 76.0% over the past decade.
(LendingTree)
The only quarter in the past ten years in which the total auto loan debt hasn't seen an increase was Q2 2020.
Car loans accounted for 9.16% of all consumer debt in 2024.
(The Motley Fool)
Even with a percentage that might appear low compared to mortgages, car loans are now easily the second-largest source of debt for Americans.
Americans originated around 25.3 million new auto loans in 2024.
(Equifax)
The latest data showed a 5.06% decrease in car loan originations compared to the same period in 2023.
The average car loan debt for new vehicles in 2024 was $41,086.
(LendingTree)
There has been a steady rise in the value of car loans. According to most recent data, the average loan for a used car was $26,091.
4.6% of outstanding auto debt is “seriously delinquent.”
(Center for Microeconomic Data)
Delinquency rates for auto loans have been increasing in the past few years, rising by more than 1% compared to 2022.
The average price of a new car is $48,978 in 2025.
(CarEdge)
The prices for new cars have been at record highs, rising by more than $15,000 since 2020 and being one of the most significant factors affecting the lending space today.
The average monthly car payment was $754 in 2024.
(Edmunds)
Just as the total debt is growing, so are monthly payments. In 2019, the average car payment per month was $467. Five years later, it almost doubled.
On average, car loan term for new vehicles is 68.2 months in 2025.
(LendingTree)
Six years. That’s how long it usually takes to pay off a car loan in America. What's more, the average term has been rising when it comes to used vehicles, now being 67.2 months.
More than 80% of new cars in 2024 were financed.
(Statista)
According to recent statistics, the vast majority of new vehicles hitting the road last year were financed with a lease or a loan.
Interest rates for car loans averaged 7.53% in 2024.
(Statista)
As interest rates on all types of loans have risen dramatically in the past four years, so have those for new car loans. Still, the rates have stabilized and remained at around the same level as at the end of 2023.
The average credit score for auto borrowers in 2024 was 717.
(Experian)
While you can get a car loan even with a lower credit score, the average has remained over 700 in the past decade, only dropping by one point compared to 2023.
The Honda CR-V was the most popular car for leasing in 2024.
(Experian)
While the Civic was the most popular model for a number of years, it has been overtaken by CR-V last year, with this model representing 2.98% of all lease originations.
Tesla Model Y was the most leased EV car in 2024.
(Experian)
Tesla is dominating the US market in electric vehicle purchases, with the Model 3 coming in second place last year, with 11.36% of all new EV leases.
18.9% of borrowers pay more than $1,000 in monthly new car loan payments in 2025.
(Edmunds)
This percentage is now at an all-time high, driven by the sharp increase in the prices of new vehicles.
The car loan market is worth $183.88 billion in 2025.
(Mordor Intelligence)
The industry is also expected to grow at a 4.56% annual rate in the next five years, and the market size is projected to reach $229.81 billion by 2030.
Americans aged 40 to 49 borrowed $40.8 billion in auto loans in 2024.
(LendingTree)
This was followed by those aged 30 to 39 with $40.1 billion in car loans.
With $7,810, Texas was the state with the highest average car loan balance in 2024.
(The Federal Reserve)
The second-highest average balances were in Louisiana ($6,860), while Florida came in third with $6,560.
Mississippi had a 6.77% car loan delinquency rate in 2024.
(The Federal Reserve)
Alabama followed in second place with a 6.05% delinquency rate.
11.4% of auto loan applications were rejected in 2024.
(Federal Reserve Bank of New York)
The average rejection rate increased by 0.4% compared to 2023, once again reaching record highs.
Sources
For years, the clients I worked for were banks. That gave me an insider’s view of how banks and other institutions create financial products and services. Then I entered the world of journalism. Fortunly is the result of our fantastic team’s hard work. I use the knowledge I acquired as a bank copywriter to create valuable content that will help you make the best possible financial decisions.
