Summary
- • The average auto loan interest rate in the U.S. is currently around 4.21%.
- • The average monthly auto loan payment in the U.S. is $568.
- • The average term length for new auto loans in the U.S. is 69 months.
- • The average credit score for borrowers getting new car loans is 711.
- • Over 85% of new cars in the U.S. are financed through auto loans.
- • The average amount financed for a new car in the U.S. is $32,480.
- • About 26% of car buyers owe more on their auto loan than the car is worth.
- • The percentage of auto loans that are subprime or deep subprime is around 20%.
- • The average down payment for a new car in the U.S. is 11% of the purchase price.
- • The average loan amount for a used car in the U.S. is $21,759.
- • Around 40% of new car loans have terms longer than 60 months.
- • The percentage of auto loans that are delinquent is currently 2.58%.
- • The average age of a vehicle at the time of trade-in is 5.3 years.
- • The average interest rate for a used car loan is 4.69%.
- • Auto loan delinquency rates are highest among borrowers aged 18 to 29.
Buckle up, folks, because were about to take a wild ride through the fast and furious world of auto loans! Did you know that the average American is cruising around with a 4.21% interest rate, a monthly payment of $568, and a credit score of 711? With over 85% of new cars hitting the road thanks to auto loans, its clear that this industry is in high gear. But beware, as about 26% of drivers might find themselves in reverse, owing more on their loan than their car is worth. So, put the pedal to the metal as we rev up and dive into the dizzying world of auto finance!
Average Interest Rates
- The average auto loan interest rate in the U.S. is currently around 4.21%.
- The average interest rate for a used car loan is 4.69%.
- The average APR for a new car loan from a credit union is 2.69%.
- The average interest rate for a new car loan from a traditional bank is 4.84%.
- The average APR for a used car loan from a credit union is 2.78%.
- The average annual percentage rate (APR) for all new auto loans in the U.S. is 4.53%.
- The average interest rate for a used car loan from a traditional bank is 5.44%.
Interpretation
With auto loan interest rates as varied as the options at a car dealership, it seems like the lending industry is playing a game of financial Twister. From traditional banks offering rates that could make your wallet wince to credit unions sweetening the deal with lower APRs, consumers have to navigate a veritable maze of numbers to find the best deal. Whether you're eyeing a shiny new set of wheels or a reliable used vehicle, understanding these rates is key to avoid getting taken for a pricey ride.
Borrower Credit Information
- The average credit score for borrowers getting new car loans is 711.
- The percentage of auto loans that are subprime or deep subprime is around 20%.
- Auto loan delinquency rates are highest among borrowers aged 18 to 29.
- 43% of auto loan transactions in the U.S. involve prime or super-prime borrowers.
- The average credit score for borrowers securing used car loans is 655.
- 29% of auto loan borrowers in the U.S. have credit scores below 620.
Interpretation
In the melodious symphony of auto loan statistics, one can't help but notice the contrasting melodies playing out. From the virtuosos of prime and super-prime borrowers hitting all the high notes at 43%, to the rebellious 20% of subprime and deep subprime players causing some dissonance. And let's not forget the young guns aged 18 to 29, trying to find their rhythm but facing the highest delinquency rates. The average credit scores of 711 for new car loans and 655 for used car loans are like the bass and treble setting the tone, while the 29% of borrowers with credit scores below 620 are the wild cards shaking up the entire composition. Just like a skilled conductor, lenders must find the perfect balance to orchestrate a harmonious future for the auto loan industry.
Loan Financing Trends
- Over 85% of new cars in the U.S. are financed through auto loans.
- The average amount financed for a new car in the U.S. is $32,480.
- About 26% of car buyers owe more on their auto loan than the car is worth.
- Around 31% of all U.S. adults have an auto loan.
- The percentage of total U.S. consumer debt represented by auto loans is 9.5%.
- The total amount of auto loan debt in the U.S. is over $1.3 trillion.
- Auto loan originations in the U.S. reached $584 billion in the second quarter of 2021.
- Auto loans make up 9% of all outstanding consumer debt in the U.S.
- 72% of new car purchases in the U.S. are financed through auto loans.
- Auto loan balances in the U.S. have grown to over $1.4 trillion.
- The average age of a vehicle when a loan is taken out is 4.9 years.
- 15% of auto loans in the U.S. are originated through credit unions.
Interpretation
In a country where cars are more than just a mode of transportation but a symbol of lifestyle and freedom, it seems fitting that over 85% of new cars are acquired through auto loans. However, with the average amount financed for a new car exceeding $32,000 and a quarter of buyers finding themselves underwater on their loans, it appears that this freedom might come at a cost. As over $1.3 trillion of auto loan debt looms large in the U.S., one thing is clear - while the wheels keep turning on the open road, the burden of these loans seems to be piling up faster than rush-hour traffic on a Friday afternoon.
Loan Payment Statistics
- The average monthly auto loan payment in the U.S. is $568.
- The average down payment for a new car in the U.S. is 11% of the purchase price.
- The average loan amount for a used car in the U.S. is $21,759.
- The percentage of auto loans that are delinquent is currently 2.58%.
- The average monthly payment for a used car loan in the U.S. is $397.
- The average loan amount for a new car in the U.S. is $34,635.
- The average total interest paid on a new car loan in the U.S. is $5,422.
- The average down payment for a used car in the U.S. is 12% of the purchase price.
Interpretation
In a nation where four wheels are more of a necessity than a luxury, the numbers paint a fascinating portrait of American auto financing habits. With an average monthly auto loan payment of $568, it seems that many are willing to splash out on their dream ride, even if it means tightening their purse strings elsewhere. However, the 2.58% delinquency rate serves as a cautionary tale, reminding us that playing the loan game comes with its risks. As we crunch the numbers—$21,759 for a used car loan, $34,635 for a new one, and $5,422 in total interest for the latter—it becomes clear that while cars may drive us forward, we must steer carefully when navigating the twists and turns of auto financing.
Loan Term Length
- The average term length for new auto loans in the U.S. is 69 months.
- Around 40% of new car loans have terms longer than 60 months.
- The average age of a vehicle at the time of trade-in is 5.3 years.
- The average loan term for a used car in the U.S. is 65 months.
- The average loan term for a new car in the U.S. is 68 months.
- Around 22% of used car loans have terms longer than 72 months.
- In the U.S., the average term for a used car loan is 63 months.
Interpretation
In a world where cars seem to age faster than milk in a college fridge, the auto loan statistics paint a picture of a society enamored with driving shiny new wheels for longer periods of time. With terms longer than a Kardashian wedding and trade-ins happening as frequently as a Taylor Swift breakup, it seems that Americans are not just buying cars, they're committing to a long-term relationship with them. So buckle up, because in this fast and furious world of auto loans, it's not just the cars that are getting a makeover, it's our financial norms as well.