With a staggering $1.61 trillion now driving the U.S. economy, auto loan debt isn't just a monthly payment—it's a national financial force reshaping how Americans get behind the wheel.
Key Takeaways
- As of Q4 2023, total outstanding auto loan debt in the US reached $1.61 trillion
- Auto loan balances grew by 0.7% in Q4 2023 to $1.61 trillion
- From 2019 to 2023, auto debt increased by 30% to over $1.5 trillion
- Average new auto loan amount was $40,250 in Q4 2023
- Used auto average loan size $26,140 in Q4 2023
- Average auto loan term reached 69.6 months for new cars in 2023
- Average APR for new auto loans was 7.18% in Q4 2023
- Used auto loan APR averaged 11.35% Q4 2023
- Superprime new car APR 5.23% average 2023
- 45% of US adults have auto loans with avg APR 9.1% 2023
- 54% of new car buyers financed in 2023
- Millennials hold 34% of auto loan debt despite 22% population
- Overall US auto delinquency rate 2.64% Q4 2023
- Subprime delinquency 5.31% 60+ days Q4 2023
- New auto delinquencies up 50bps to 1.9% Q3 2023
US auto loan debt has surged to $1.6 trillion with more borrowers facing higher payments.
Average Loan Amounts and Terms
1Average new auto loan amount was $40,250 in Q4 2023
Verified2Used auto average loan size $26,140 in Q4 2023
Verified3Average auto loan term reached 69.6 months for new cars in 2023
Verified420% of new auto loans in 2023 were over 72 months
Directional5Average used car loan term 67.8 months Q3 2023
Single source6Superprime borrowers average loan $45,000 new autos 2023
Verified7Subprime used loan average $20,500 in 2023
Verified8Refinance auto loans averaged $28,000 in 2023
Verified9EV new auto loans averaged $48,000 in Q4 2023
Directional1015-year auto loans now 5% of originations 2023
Single source11Average down payment new cars 10.2% or $5,500 in 2023
Verified12Used car down payments averaged 11.8% in Q3 2023
Verified13Loans under $20,000 22% of used market 2023
Verified14Jumbo auto loans over $50,000 18% new vehicles 2023
Directional15Average monthly payment new autos $742 in 2023
Single source16Used auto monthly payments averaged $520 Q4 2023
Verified1772-month loans average amount $35,500 new 2023
Verified18Prime borrowers avg term 68 months used cars 2023
Verified19Deep subprime avg loan $15,200 used 2023
Directional20Lease buyouts average $25,000 in 2023
Single source21Average loan-to-value new autos 115% in 2023
Verified22Used LTV averaged 126% Q3 2023
Verified23Balloon payment loans 3% of market avg $30k 2023
Verified24Average new auto loan Q1 2024 $41,000+
Directional2560-month loans avg $32,000 used 2023
Single source26Millennial avg auto loan $28,500 2023
VerifiedAverage Loan Amounts and Terms Interpretation
The sobering math of modern car ownership means we're taking out seven-year mortgages on rapidly depreciating assets, often borrowing more than they're worth, to drive off the lot with a payment that feels like a second rent check.
Borrower Demographics
145% of US adults have auto loans with avg APR 9.1% 2023
Verified254% of new car buyers financed in 2023
Verified3Millennials hold 34% of auto loan debt despite 22% population
Verified4Gen Z auto loan penetration 25% up from 18% in 2022
Directional5Women borrowers 48% of auto loans but avg smaller amounts 2023
Single source6Superprime borrowers 47% of new originations 2023
Verified7Subprime share of used loans 20% in Q4 2023
Verified8Average FICO for new auto loans 765 in 2023
Verified928% of subprime borrowers 90+ days delinquent 2023
Directional10Black households auto debt 1.5x white households adjusted income 2023
Single source1162% of households earning <$50k have auto loans 2023
Verified12Boomers avg FICO 740 for auto loans 2023
Verified13Urban borrowers 55% of auto loan volume 2023
Verified14First-time buyers 15% of new loans avg FICO 710 2023
Directional15Hispanic borrowers 18% of market share 2023
Single source16Self-employed 12% higher rejection rates auto loans 2023
Verified1735-44 age group highest auto debt $15k avg 2023
Verified18College grads 2x more likely to finance luxury autos 2023
Verified19Single borrowers 40% of subprime segment 2023
Directional20Rural areas 22% higher used loan reliance 2023
Single source21760+ FICO avg income $120k for auto loans 2023
Verified22Veterans 8% of auto loans avg longer terms 2023
Verified23Gig workers rejection rate 25% auto financing 2023
Verified2425-34yo 30% of new originations 2023
Directional25Low-income (<$35k) 35% subprime auto loans 2023
Single source26Female-headed households avg $10k more debt 2023
VerifiedBorrower Demographics Interpretation
The American auto loan landscape is a tale of two credit scores: while superprime borrowers are comfortably cruising in new cars, a rising tide of younger, urban, and lower-income buyers is navigating rougher financial waters with longer terms and higher rates just to keep pace.
Delinquency and Default Rates
1Overall US auto delinquency rate 2.64% Q4 2023
Verified2Subprime delinquency 5.31% 60+ days Q4 2023
Verified3New auto delinquencies up 50bps to 1.9% Q3 2023
Verified4Used auto 90-day delinquency 4.2% end 2023
Directional5Prime delinquency steady at 1.8% Q4 2023
Single source6Deep subprime 90+ days 11.5% Q3 2023
Verified7Serious delinquency (90+) overall 3.8% used loans 2023
Verified8EV loan delinquencies 0.5% lower than gas 2023
Verified92023 subprime new delinquency peaked at 4.9%
Directional10Credit union auto delinquencies 1.2% Q4 2023
Single source11Buy-here-pay-here default rates 25% annual 2023
Verified12Gen Z delinquency 4.1% vs avg 2.7% 2023
Verified13Transition to delinquency 60-day rate 1.65% Q4 2023
Verified14Foreclosure starts on autos up 10% YoY 2023
Directional15Negative equity linked to 40% higher delinquency 2023
Single source16Long-term loans (>72mo) delinquency 3.2% 2023
Verified17Regional variation: South 3.1% delinquency vs Northeast 2.1% 2023
Verified18Refinance lowered delinquency by 15% for participants 2023
Verified19Subprime used 30+ days 12.4% Q4 2023
Directional20Overall default rate 1.2% auto loans 2023
Single source21Millennial delinquency 3.0% avg 2023
Verified22Charge-off rates subprime 5.8% Q3 2023
Verified2372-month loans 2.8% delinquency rate 2023
Verified24Post-COVID delinquency recovery to 2.5% by mid-2023
Directional25Low FICO (<620) 8.2% serious delinquency 2023
Single source26Auto repossessions rose 20% YoY to 1.7 million in 2023
Verified27Subprime repossessions 127,000 in Q4 2023
Verified28Repo rates per 1,000 loans 3.5 overall 2023
Verified29Used vehicle repos up 23% to 1.4M in 2023
Directional30New auto repos minimal at 0.8 per 1,000 2023
Single source31Subprime repo rate 15.2 per 1,000 Q4 2023
Verified32States with highest repos: Texas 180k in 2023
Verified33EV repos 30% below average due to value retention 2023
Verified34Buy-here-pay-here repos 40% of inventory turnover 2023
Directional35Repo auctions averaged $14,500 per vehicle 2023
Single source36Delinquent loans entering repo 45 days avg 2023
Verified37Prime borrower repos 0.4 per 1,000 2023
Verified38Negative equity vehicles 25% more likely repossessed 2023
Verified39Repo recovery rates 55% LTV avg 2023
Directional40Q1 2024 repos up 5% QoQ to 350k
Single source41Long-term loan repos 1.8x higher 2023
Verified42Gen Z repos 2x millennial rate 2023
Verified43Credit unions repo rate 1.1 per 1,000 2023
Verified44Urban areas 60% of national repos 2023
Directional45Post-repo deficiency balances avg $8,200 2023
Single sourceDelinquency and Default Rates Interpretation
While America's prime borrowers are cruising along steadily, a disturbing number of subprime drivers—particularly in used, long-term loans—are sputtering towards a financial cliff, creating a two-lane economy where the repossession lane is getting uncomfortably crowded.
Interest Rates and APRs
1Average APR for new auto loans was 7.18% in Q4 2023
Verified2Used auto loan APR averaged 11.35% Q4 2023
Verified3Superprime new car APR 5.23% average 2023
Verified4Subprime used APR hit 16.85% in Q3 2023
Directional5Prime borrowers new auto APR 6.75% Q4 2023
Single source6Deep subprime APRs over 18% for 70% of loans 2023
Verified7Refinance APR savings averaged 2.1% in 2023
Verified8EV financing APR 0.9% lower than ICE 2023
Verified984-month loans APR averaged 8.2% new 2023
Directional10Credit union auto APRs 1.5% below banks 2023
Single source11Online lender APRs averaged 9.8% used cars 2023
Verified12Fed rate hikes pushed auto APRs up 4% since 2022
Verified13Nonprime APRs 14.2% average Q3 2023
Verified140% APR deals 12% of new sales 2023
Directional15Average interest paid over loan life $9,200 new 2023
Single source16Used superprime APR 7.1% Q4 2023
Verified17Dealer-arranged loans APR 2% higher than direct 2023
Verified18Gen Z subprime APR averaged 15.5% 2023
Verified19Fixed vs variable APR 95% fixed in auto loans 2023
Directional20Average auto loan rate forecast 7.5% for 2024
Single source21Buy-here-pay-here APRs exceed 20% average 2023
Verified22Prime used APR 8.45% end 2023
Verified2348-month loans APR 6.9% new cars 2023
Verified2437% of borrowers with 700+ FICO got under 6% APR 2023
DirectionalInterest Rates and APRs Interpretation
This sobering parade of numbers reveals a financial caste system on wheels, where your credit score dictates not just your monthly payment but your very dignity, proving that while all cars may depreciate, the cost of financing one is a brutally efficient measure of societal standing.
Market Size and Growth
1As of Q4 2023, total outstanding auto loan debt in the US reached $1.61 trillion
Verified2Auto loan balances grew by 0.7% in Q4 2023 to $1.61 trillion
Verified3From 2019 to 2023, auto debt increased by 30% to over $1.5 trillion
Verified4In 2023, auto loans accounted for 9.3% of total consumer debt at $1.58 trillion
Directional5Q3 2023 saw auto loan debt at $1.58 trillion, up 8.7% year-over-year
Single source6By end of 2022, US auto loan balances hit $1.52 trillion
Verified7Auto debt surged 12% in 2022 to $1.49 trillion
Verified82023 average new vehicle financing was 85% of transactions
Verified9Total auto loans originated in 2022 exceeded $700 billion
Directional10Captive finance share of new auto loans was 32% in 2023
Single source11Bank-originated auto loans grew 5% YoY in Q3 2023
Verified12Credit union auto loans outstanding reached $140 billion in 2023
Verified13Prime auto loan originations hit $285 billion in 2023
Verified14Subprime auto loans totaled $170 billion outstanding in Q3 2023
Directional15Used auto loan balances were $682 billion in Q4 2023
Single source16New auto loan debt stood at $928 billion end of 2023
Verified17Auto loan market projected to grow to $2 trillion by 2027
Verified18112.7 million auto loans outstanding as of Q3 2023
Verified19Average household auto debt $11,184 in 2023
Directional2042% of US households had auto loans in 2023
Single source21Auto loans comprised 8.9% of GDP in consumer credit 2023
Verified222023 saw $500 billion in new auto lending volume
Verified23Finance companies hold 15% of auto loan market share 2023
Verified24Regional banks auto lending up 4% in 2023
Directional25Online lenders captured 10% of auto loans in 2023
Single source26EV auto financing volume reached $50 billion in 2023
Verified27Lease financing was 28% of new vehicle transactions 2023
Verified28Total securitized auto loans $250 billion in 2023
Verified29Millennials hold 40% of auto loan debt 2023
Directional30Gen Z auto loans grew 25% YoY in 2023
Single sourceMarket Size and Growth Interpretation
Americans are now so deeply indebted to their cars that a significant portion of the population is essentially leasing their freedom from a bank parking lot.
Sources & References
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