New and used vehicle financing costs both increased over the past year, although at different rates. Data reported by LendingTree using Experian figures also show notable differences in borrowing patterns depending on consumers’ credit scores, while Federal Reserve Bank of New York data point to continued growth in the nation’s overall auto loan balances.
The latest figures illustrate how vehicle financing remains a significant component of household debt in the United States. According to the Federal Reserve Bank of New York, auto loans now represent the country’s second-largest category of consumer debt, narrowly surpassing student loans.
Monthly Vehicle Payments Continue To Climb
According to LendingTree, citing Experian data for the first quarter of 2026, the average monthly payment for a new vehicle increased 2.9% from a year earlier to a record $770.
Lease payments for new vehicles rose even faster, increasing 3.2% year over year to an average of $619 per month. Used vehicle payments also moved higher, though at a slower pace, rising 1.5% to an average monthly payment of $531.
Payment amounts also varied across credit score categories. Nonprime borrowers with credit scores ranging from 601 to 660 recorded the highest average monthly payment for new vehicles at $811. They were followed by subprime borrowers, whose credit scores ranged between 501 and 600, with an average payment of $792.
Super-prime borrowers, with credit scores between 781 and 850, had the lowest average monthly payment for a new vehicle at $753.
Loan Amounts Differ Across Borrower Profiles
Experian reported that the average auto loan amount reached $43,925 for new vehicles during the first quarter, up from $43,582 in the previous quarter. The average loan for used vehicles stood at $27,070, down from $27,528 in the prior quarter.
Among buyers of new vehicles, borrowers in the prime credit tier, with scores ranging from 661 to 780, took out the largest loans, averaging $46,244.
For used vehicles, borrowers in the super-prime category recorded the highest average loan amount at $29,599.
According to the Bureau of Labor Statistics, the Consumer Price Index data for May showed that prices for new vehicles increased 0.2% compared with a year earlier, while prices for used cars and trucks declined 2% over the same period. The report noted that higher vehicle prices have contributed to growing consumer loan balances.
Auto Loan Debt Rises to Nearly $1.7 Trillion
According to the Federal Reserve Bank of New York, outstanding auto loan debt totaled $1.685 trillion during the first quarter of 2026. That represents a 57.3% increase compared with the first quarter of 2016, when total auto loan debt stood at $1.071 trillion.
The same data show that mortgages account for 70.2% of total U.S. consumer debt, while auto loans represent 9% at $1.685 trillion. Auto loans ranked as the second-largest category of consumer debt, narrowly exceeding the $1.658 trillion in outstanding student loan debt.
Auto loan originations reached $182.1 billion in the first quarter of 2026, slightly higher than the $180.8 billion recorded during the fourth quarter of 2025, although below the recent peak of $187.9 billion reported in the second quarter of the previous year. The highest level on record remains the second quarter of 2021, when $201.9 billion in auto loans were originated, according to the Federal Reserve Bank of New York.
Borrowers in their 40s originated the largest volume of new auto loans during the first quarter, totaling $40 billion. Consumers in their 30s followed with $38.6 billion, narrowly ahead of borrowers in their 50s, who originated $38.3 billion.
Consumers aged 18 to 29 originated $25.3 billion in auto loans during the quarter, while borrowers in their 60s also originated $25.3 billion.
