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?

Featured Car Loan Statistics for 2026 - Editor’s Choice

• Americans owe more than $1.67 trillion on their cars.
• 20.3% of borrowers pay more than $1,000 in monthly car payments in 2026.
• More than 80% of new cars were financed in 2025.
• Car loans represented 8.89% of total consumer debt in the US in 2025, second only to mortgages.
• The average monthly payment for a new car is $772 in 2026.

Americans owed more than $1.67 trillion in auto loans in 2025.

(Experian)

Every year the automotive industry sets a new collective debt record and last year was no different. Compared to the same period in 2024, the total auto loan debt has increased by $12 billion in the final quarter alone.

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 8.89% of all consumer debt in 2025.

(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 $180.8 billion in new auto loans in Q4 2025.

(Equifax)

The latest data showed a slight decrease in car loan originations compared to the $183.9 billion originated in Q3 2025.

The average car loan debt for new vehicles in 2025 was $43,582.

(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 $27,528.

5.0% 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 significantly from the 3.7% seen in 2022.

The average price of a new car is $49,191 in 2026.

(CarEdge)

The prices for new cars have been at record highs, with the average transaction price hitting an all-time high for January 2026, being one of the most significant factors affecting the lending space today.

The average monthly car payment was $772 in 2025.

(Edmunds)

Just as the total debt was growing, so were monthly payments. In 2019, the average car payment per month was $467. Six years later, it has almost doubled for many new car buyers.

On average, car loan term for new vehicles was 68.9 months in 2025.

(LendingTree)

Nearly 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 67.7 months.

More than 80% of new cars in 2025 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 7.5% in 2025.

(Statista)

As interest rates on all types of loans rose dramatically in the preceding years, new car loans from commercial banks peaked and then began a gradual decline.

The average credit score for auto borrowers in 2025 was 753.

(Experian)

While you can get a car loan even with a lower credit score, the average has climbed significantly for new vehicles, while the average score for used car borrowers was 689.

The Jaecoo 7 was the most popular car for leasing in 2025.

(Experian)

While the Honda CR-V was the most popular model for a number of years, it was overtaken by the Jaecoo 7 last year, which represented over 21% of top lease orders.

Tesla Model Y was the most leased EV car in 2025.

(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.

20.3% of borrowers pay more than $1,000 in monthly new car loan payments in 2026.

(Edmunds)

This percentage is now at an all-time high, driven by the sharp increase in the prices of new vehicles and reaching a record in the final quarter of 2025.

The car loan market was 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 9.8% car loan delinquency rate in 2025.

(The Federal Reserve)

Louisiana followed in second place with a 8.4% delinquency rate.

15.2% of auto loan applications were rejected in 2025.

(Federal Reserve Bank of New York)

The average rejection rate increased sharply toward the end of 2025, reaching more than double the rates reported in the previous year.

The average negative equity on vehicle trade-ins reached $6,458 in 2025.

(Edmunds)

This record high in "upside-down" loans made it increasingly difficult for consumers to switch vehicles, as many owed significantly more than their car's current market value.

Auto loan balances for Gen Z borrowers increased by 14% in 2025.

(Experian)

This year-over-year surge represents the fastest growth rate among any generation, as younger drivers entered the market during a period of peak vehicle pricing.

Leasing accounted for 25.7% of new vehicle retail sales in 2025.

(Cox Automotive)

This represents a significant rebound from the inventory-starved lows of 2022, as manufacturers returned to aggressive lease incentives to move volume.

The average monthly payment for a leased EV was $613 in 2025.

(Experian)

Despite higher MSRPs, leased electric vehicles often featured lower monthly payments than comparable gas-powered luxury SUVs, largely due to integrated federal tax incentives.