Average New Car Loan Tops $40K as Prices Climb

Used buyers also are borrowing more
By Bob Cronin,  Newser Staff
Posted Aug 25, 2022 5:40 PM CDT
Average Car Payment Hits $667 a Month

Gas gets more attention, but the price of new vehicles has skyrocketed, too—hitting a record average of $46,259 this month. That's led to another record: The average new vehicle loan in the US reached $40,290 in the second quarter, Experian reported Thursday. The company calculated that the average amount borrowed climbed 13.2%, and that the average monthly payment was $667, up nearly 15% from the year before, per Reuters. The length of a loan, 69 months or so, has held steady.

Raising interest rates, as the Federal Reserve has done, hasn't dampened demand or slowed prices that are generally rising faster than the nation's overall inflation rate. Automakers say they can't keep up, partly because of lingering supply chain issues. The used car market is growing, but there's not much relief to be found there. Loans on used vehicles rose 18.7% in the second quarter, to an average of $28,534 and a monthly payment of $515. That payment is up 17% from the year before. The share of vehicle loans going toward used vehicles was 61.8%, an increase from 58.5%. (More car loan stories.)

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