Car Loan Debts Reach $1.64 Trillion in 2024; Average Payments Top $730

The average car payment in 2024 is $730 for new vehicles and $520 for used vehicles, according to Experian. Auto loan debt has reached $1.64 trillion, accounting for 9% of household debt. Delinquencies have increased, with serious delinquencies up from 2.53% in 2023 to 2.90% in 2024. Financing for new vehicles declined to 42.96%, while used vehicle financing rose to 57.04%. Credit union financing made up 21.15% of all auto loans, and captive financing surpassed banks as the most common lender type at 29.13%.

In 2024, the auto loan market is witnessing significant changes, with new and used vehicle financing patterns evolving in response to various economic factors. According to Experian, the average monthly car loan payment for new vehicles stands at $730, while used vehicles command an average of $520 [1]. These figures represent a 3.5% increase and a 5.6% decrease, respectively, compared to the previous year.

Auto loan debt has surpassed the $1.64 trillion mark, accounting for approximately 9% of household debt [1]. This increase in debt is not without its consequences, as delinquencies have risen, with serious delinquencies climbing from 2.53% in 2023 to 2.90% in 2024 [1].

Financing trends have also shifted, with new vehicle financing declining to 42.96% and used vehicle financing rising to 57.04% [1]. These figures highlight the growing preference for used vehicles among consumers, potentially driven by affordability concerns and the increasing availability of reliable, pre-owned options.

Credit unions and captive financing have emerged as prominent players in the auto loan market, accounting for 21.15% and 29.13% of all auto loans, respectively [1]. These figures represent a notable shift from traditional banks, which have historically held a significant share of the market.

Several factors contribute to the determination of monthly car loan payments. These include the loan amount, interest rate, type of vehicle, and loan term [2]. While some of these factors are within a borrower's control, others are influenced by external factors such as market conditions and lender preferences.

As car buyers navigate the complex world of auto financing, it is essential to use the average car payment amounts as a benchmark rather than a definitive guide. By understanding the factors that influence monthly car loan payments and the current trends in the market, consumers can make informed decisions and secure the best possible financing terms.

References:

[1] NerdWallet. (2024, July 1). Average monthly car payment in the U.S. Retrieved from https://www.nerdwallet.com/article/loans/auto-loans/average-monthly-car-payment

[2] NerdWallet. (2024, July 1). What determines your monthly car payment? Retrieved from https://www.nerdwallet.com/article/loans/auto-loans/what-determines-your-monthly-car-payment