Average New Vehicle Auto Payment Hits Record High $523 Per Month

The average size of a loan for a new car in the U.S. set a record in the first quarter as did the average payment.

  • New vehicle loans averaged $31,455
  • The average monthly payment for a new vehicle hit at record $523/month
  • Consumers are lengthening loan terms, with six years being the most common, to adjust to the higher costs and rising interest rates.
  • Outstanding loan balances reached a record high of $1.108 trillion
  • Loans for used vehicles reached $19,536, also a record

Auto Math

$523 * 12 * 6 = $37,656

That total does not factor in the down payment.

Interest = $37,656 - $31,455 = $6,201.

That's $1033.50 in interest annually.


At the end of six years, perhaps the car will fetch $5,000 in a trade-in, but everything depends on miles, damage, and of course advancements in self-driving.

Anyone trading the car in after three or four years will be hugely underwater.

The dream of owning a new vehicle is becoming more elusive,” said Melinda Zabritski, senior director of automotive financial solutions at Experian.

Elusive Dream?

Ah, the dream of spending $30,000 to $50,000 on a depreciating asset.

Elusive has not yet arrived, but it will.

Mike "Mish" Shedlock

No. 1-19

And it's getting worse. People are not buying 4-door cars anymore, which are cheap, have good gas mileage, and drive well. Instead, they're piling into trucks and SUV's which are horrendously overpriced (70k for a pickup truck?), get poor gas mileage, and bob and weave all over the road.


And mos people still only keep their cars for 3 years then trade in and roll any negative equity into new loan. You also have another $100 or so for car insurance and of course the $37 annual inspection that NY state and Massachusetts charge


5,000 after 6 years? sorry Mish but you haven't looked at car values lately. My 12 year old honda accord can still fetch 4k with 225k on the dash. Easy credit has inflated used car values to the point the average consumer looks at the price difference between a new and used car and thinks the depreciation curve will look the same in the next five years as it did the past five.


I always pay cash and go through the same routine. You can get 0% financing or $3k cash back. I take the cash back. The sales person doesn't know what to do since everyone takes the 0% financing. They have to consult with the sales manager.