With auto loan debt in the U.S. hitting a staggering $1.6 trillion and monthly payments soaring to record highs, navigating your car financing has never been more critical.
Key Takeaways
- In Q2 2024, outstanding auto loan balances in the US totaled $1.61 trillion, up 0.7% from Q1 and 11% year-over-year
- New auto loans originated in 2023 averaged $41,444, a record high with a 3.3% increase from 2022
- Used auto loan originations reached 16.9 million in 2023, comprising 78% of total vehicle loans issued that year
- Female borrowers held 52% of auto loans in 2023, totaling $840 billion
- Male auto loan holders averaged $26,500 debt vs $22,800 for females in Q1 2024
- 45% of subprime auto borrowers were under 35 in 2023, up from 40% in 2021
- Average new car loan amount for prime borrowers was $42,500 in Q2 2024
- Used car loans averaged 67.5 months duration in 2023, up from 65 in 2022
- Average loan-to-value ratio for new autos was 115% in Q4 2023 due to high prices
- Average interest rate for 60-month new car loans was 7.18% in July 2024
- Used car loan APR averaged 11.72% for 48-month terms in Q2 2024
- Super-prime new auto rates dipped to 6.35% average in Q1 2024
- Delinquency rate for auto loans 60+ days past due reached 3.97% in Q1 2024, highest since 2010
- Serious delinquency (90+ days) for prime autos was 1.68% in Q2 2024, up 0.3% YoY
- Subprime auto delinquency hit 5.91% for 60+ days in Q1 2024
Auto loan balances hit a record high while delinquency rates also increased sharply.
Average Loan Terms
1Average new car loan amount for prime borrowers was $42,500 in Q2 2024
Verified2Used car loans averaged 67.5 months duration in 2023, up from 65 in 2022
Verified3Average loan-to-value ratio for new autos was 115% in Q4 2023 due to high prices
Verified4Super-prime borrowers averaged 62-month terms on new cars at $45,200 in 2023
Directional5Subprime used car LTV hit 142% average in Q1 2024, risking higher repossessions
Single source6Average monthly payment for new auto loans reached $742 in Q2 2024, up 5% YoY
Verified772-month loans comprised 23% of new originations in 2023, down from 27% peak
Verified8Average down payment on used cars fell to 9.2% or $2,500 in 2023
Verified9Prime used auto loans averaged $25,800 with 64-month terms in Q4 2023
Directional10Nonprime new car loans hit $33,000 average amid incentives in 2023
Single source11Average auto refinance loan was $22,400 in 2023, shortening terms by 8 months
Verified12EV auto loans averaged $48,200 with 68-month terms in Q1 2024
Verified1384-month loans made up 5% of originations but 15% of subprime volume in 2023
Verified14Average amount financed per new vehicle loan was $39,500 in H1 2024
Directional15Used truck loans averaged $28,900 vs $24,100 for sedans in 2023
Single source16Lease penetration fell to 22% of new sales in 2023 from 30% in 2019
Verified17Average new auto loan for SUVs was $43,200 in Q2 2024
Verified18Deep subprime loans averaged 70 months at $18,500 in 2023
VerifiedAverage Loan Terms Interpretation
The data paints a picture of an auto market powered by dangerously long loans, where new cars are routinely bought underwater and used cars are financed with barely any skin in the game, stretching the definition of affordability to its breaking point.
Borrower Demographics
1Female borrowers held 52% of auto loans in 2023, totaling $840 billion
Verified2Male auto loan holders averaged $26,500 debt vs $22,800 for females in Q1 2024
Verified345% of subprime auto borrowers were under 35 in 2023, up from 40% in 2021
Verified4African American households had average auto debt of $18,200 in 2023, 15% higher than 2020
Directional5Hispanic borrowers originated 22% of new auto loans in 2023 despite 19% population share
Single source662% of Gen Z car buyers used loans in 2023, averaging 72-month terms
Verified7Rural borrowers had 28% higher auto loan balances at $29,500 average in 2023
Verified8College-educated borrowers averaged $35,200 auto debt vs $21,400 for non-grads in 2023
Verified9Single borrowers comprised 41% of auto loan originations in Q4 2023
Directional10Income under $50k households had 55% subprime auto loans in 2023
Single source1135-44 age group held 29% of total auto debt at $480 billion in 2023
Verified12Women under 30 originated 18% more auto loans in 2023 than men same age
Verified13Low-income minority borrowers faced 2% higher rates on average in 2023
Verified1451% of married couples financed vehicles jointly in 2023, averaging $38,000 loans
Directional15Self-employed borrowers represented 12% of subprime auto loans in Q1 2024
Single source16Urban millennials averaged 68-month loan terms vs 60 for boomers in 2023
VerifiedBorrower Demographics Interpretation
While women hold the majority of the auto loan pie, men take bigger slices on average, revealing a financial landscape where debt loads, rates, and terms shift significantly across age, education, and zip code, painting a portrait of an industry fueled by long commitments and demographic divides.
Delinquency and Repossession
1Delinquency rate for auto loans 60+ days past due reached 3.97% in Q1 2024, highest since 2010
Verified2Serious delinquency (90+ days) for prime autos was 1.68% in Q2 2024, up 0.3% YoY
Verified3Subprime auto delinquency hit 5.91% for 60+ days in Q1 2024
Verified4Repossessions rose 22% YoY to 388,000 in H1 2024
Directional530-day delinquency rate stood at 4.9% for all auto loans in Q1 2024
Single source6Used car subprime 90-day delinquency reached 7.2% in Q2 2024
Verified7Auto loan charge-off rate was 4.01% annualized in Q1 2024, up from 3.5% prior year
Verified8Repossession inventory grew 15% to 1.2 million vehicles in Q2 2024
Verified9Deep subprime delinquency spiked to 10.3% 60+ days in Q1 2024
Directional10Prime new auto 60-day delinquency was 1.8% in 2023 average
Single source11Auto recoveries averaged 52% of loan balance in 2023 repossessions
Verified12Delinquency transitions increased 18% for subprime used loans in Q1 2024
Verified13Net charge-offs for autos hit $28 billion annualized in Q2 2024
Verified14120+ day delinquency for credit unions was 1.2% in 2023
Directional15Repossessions per 1,000 loans rose to 3.4 in subprime segment H1 2024
Single source16Early delinquency (30 days) for new autos was 2.1% in Q2 2024
Verified17Subprime charge-off rates reached 9.5% in Q1 2024, highest in 13 years
Verified18Auto loan modifications hit 1.5 million in 2023 to stave off delinquencies
Verified19Repossession notices up 27% YoY to 1.1 million in Q2 2024
Directional20Serious delinquency for used loans was 3.2% in Q1 2024
Single source21Auto loan debt serviced past due rose to 3.2% of balances in Q1 2024
Verified22Subprime EV delinquency was 6.8% vs 5.5% for gas in Q1 2024
Verified23Bank auto net charge-offs increased 35% YoY to $4.5 billion in Q1 2024
VerifiedDelinquency and Repossession Interpretation
With more car owners finding it harder to keep up with payments than at any point since the last recession, the American dream of vehicle ownership is increasingly being towed back to the repo lot, one delinquent loan at a time.
Interest Rates
1Average interest rate for 60-month new car loans was 7.18% in July 2024
Verified2Used car loan APR averaged 11.72% for 48-month terms in Q2 2024
Verified3Super-prime new auto rates dipped to 6.35% average in Q1 2024
Verified4Subprime used car rates hit 15.62% for 60-month loans in 2023
Directional5Prime borrower used auto APR was 8.42% in Q2 2024, up 1.5% YoY
Single source672-month new car loans carried 7.85% average rate in July 2024
Verified7Deep subprime rates averaged 18.5% on used cars in Q1 2024
Verified8Credit union auto rates averaged 6.8% for new cars under 650 FICO in 2023
Verified9Female borrowers paid 0.4% higher APR on average than males in 2023
Directional10EV financing rates were 1.2% lower than ICE vehicles at 6.9% average in Q2 2024
Single source11Refinance auto rates averaged 7.2% in 2023, saving borrowers $1,200 annually
Verified12Non-prime new auto APR climbed to 10.5% in Q4 2023
Verified1336-month used loan rates were 9.8% average for prime credit in 2024
Verified14Rates for scores 661-780 averaged 9.34% on used autos in Q2 2024
Directional15Captive lenders offered 4.9% promo rates on select models in H1 2024
Single source16Subprime refinance rates hit 14.2% average amid tight credit in 2023
Verified17Average auto loan rate spread over Treasury was 450 bps in Q2 2024
Verified18Gen Z borrowers faced 12.1% APR average on used cars in 2023
Verified1948-month new car loans averaged 6.99% in July 2024 per Bankrate survey
DirectionalInterest Rates Interpretation
The data paints a clear, if sobering, picture: your car's price tag is just the opening bid, and the final auction is determined by what you drive, when you buy it, and most importantly, who the bank thinks you are.
Loan Volume and Market Size
1In Q2 2024, outstanding auto loan balances in the US totaled $1.61 trillion, up 0.7% from Q1 and 11% year-over-year
Verified2New auto loans originated in 2023 averaged $41,444, a record high with a 3.3% increase from 2022
Verified3Used auto loan originations reached 16.9 million in 2023, comprising 78% of total vehicle loans issued that year
Verified4Total auto loan originations in Q4 2023 hit 7.6 million, the highest quarterly figure since Q1 2020 pre-pandemic levels
Directional5Auto loan debt as a percentage of disposable personal income stood at 9.5% in Q2 2024, near the record high of 9.6% set in Q4 2022
Single source6Commercial bank auto loans outstanding grew to $1.07 trillion by Q1 2024, representing 66% of total auto debt
Verified7Captive finance company auto loans reached $449 billion in Q2 2024, up 2.4% year-over-year amid strong new vehicle sales
Verified8Credit union auto loan portfolios expanded by 4.2% to $155 billion in 2023, driven by competitive rates
Verified9Finance company auto loans outstanding hit $92 billion in Q2 2024, a 5.1% increase from prior year
Directional10Subprime auto loan originations surged 12% in 2023 to over 2 million loans despite higher rates
Single source11Lease originations fell to 1.1 million in Q4 2023, down 15% from 2022 due to rising vehicle prices
Verified12Auto loan securitizations totaled $25 billion in Q1 2024, with prime collateral dominating at 70%
Verified13Delinquency transitions pushed total past-due auto loans to 24.2 million in Q1 2024
Verified14New vehicle registrations financed by loans reached 15.6 million in 2023, up 12% from 2022
Directional15Used vehicle loan originations averaged $27,400 in 2023, with volume up 5% to 20.5 million units
Single source16Total US auto debt surpassed $1.6 trillion in mid-2024, with 113.3 million outstanding loans
Verified17Auto loan balances per borrower averaged $24,200 in Q1 2024 across 116 million accounts
Verified18Prime auto loan originations grew 8% in 2023 to 12 million loans
Verified19Non-prime used car loan volume hit 4.8 million in 2023, up 10% amid affordability challenges
Directional20Auto ABS issuance reached $42 billion in H1 2024, on pace for annual record
Single source21Millennial auto loan debt totaled $500 billion in 2023, 31% of total market
Verified22Gen Z new auto loans grew 25% in 2023 to $50 billion outstanding
Verified23Baby boomer auto loans averaged $32,000 in 2023, with 22 million accounts
VerifiedLoan Volume and Market Size Interpretation
America is driving itself into a record-breaking ditch, fueled by a trillion-dollar car loan habit where even the used models now cost a fortune, the bills are piling up faster than the miles, and every generation from Boomers to Zoomers is eagerly strapping in for the financially bumpy ride.
Sources & References
- Reference 1FEDERALRESERVEfederalreserve.govVisit source
- Reference 2EXPERIANexperian.comVisit source
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- Reference 5TRANSUNIONtransunion.comVisit source
- Reference 6COXAUTOINCcoxautoinc.comVisit source
- Reference 7EDMUNDSedmunds.comVisit source
- Reference 8LENDINGTREElendingtree.comVisit source
- Reference 9DBdb.comVisit source
- Reference 10BANKRATEbankrate.comVisit source
- Reference 11URBANurban.orgVisit source
- Reference 12CONSUMERFINANCEconsumerfinance.govVisit source
- Reference 13CARFAXcarfax.comVisit source
- Reference 14NERDWALLETnerdwallet.comVisit source
- Reference 15MYFICOmyfico.comVisit source
- Reference 16MANHEIMmanheim.comVisit source
- Reference 17NEWYORKFEDnewyorkfed.orgVisit source
- Reference 18FDICfdic.govVisit source