Average New-Car Loan Surges $2,150 in a Year to Over $43,000

The average new-car loan in the U.S. has jumped $2,150 in a single year to $43,925, according to Experian Automotive’s latest analysis of over 5 million open car loans and leases. To keep monthly payments manageable, buyers are stretching loan terms to record lengths—35.6% of new-car loans now exceed six years, up from 30.8% a year ago. Even more extreme, 3.3% of borrowers are signing 85-month loans or longer, a rise from 2.9%. The typical monthly payment has climbed from $748 to $770, but nearly one in five new-car loans now tops $1,000 per month, a sharp increase from 17.4% just a year prior. Notably, 74% of these $1,000-plus monthly payments are for non-luxury models, including heavy-duty pickups like the Chevrolet Silverado 1500, Ram 1500, and Ford F-150. The average new-car loan term now stands at 69.5 months, while used-car loans average 67.7 months. The average used-car loan has also risen $785 year-over-year to $27,070, with average monthly payments increasing from $523 to $531. Experian attributes the trend to soaring vehicle prices post-pandemic and semiconductor shortages, forcing buyers to borrow more and repay over longer periods just to drive off in something new. The data underscores the growing financial strain on American car buyers, with affordability remaining a critical concern despite longer loan terms.