Auto loan debt statistics 2024

Auto loan debt statistics

People take out auto loans to make buying a new or used vehicle more affordable. Auto loan payments, however, can be significant depending on credit score, loan size and other factors.

• In the first quarter of 2024, the average new vehicle loan amount was $40,634, a decrease of $481 from the previous year.
• From 2023 to 2024, the average monthly payment for a new vehicle increased $3 to $735.
• Average interest rates rose to 6.73% for new vehicles and 11.91% for used.
• Between 2007 and 2017, auto debt increased the fastest for Americans ages 70 and older, rising by 73%.

Average auto debt by year

Since 2019, the average size of auto loan debt has steadily increased. From 2022 to 2023, the average debt rose $1,180, from $22,610 to $23,790.

Debt composition by age group shows that auto debt drops to a less significant portion of total debt composition as people age. At the end of 2023, for people 18 to 29 years old, auto loans comprised 17% of their total debt, ahead of credit card and other debt, but behind student loans and mortgage debt.

The average amount of new auto loans has steadily gone up since 2021. However, it decreased slightly going into 2024, down $481.

From 2023 to 2024, SUVs have gone from nearly 62% to almost 65% of new vehicle financing. Meanwhile, in that same time frame the percentages of pickups, sedans, vans, convertibles, coupes and hatchbacks have gone down for new vehicle financing.

Average cost of a car

Car prices for both new and used vehicles have significantly increased since 2020. The impact of higher car prices means larger loans and higher monthly payments. However, a shift in the automotive market may be occurring, with average car prices trending down from their historic high at the end of 2022. New vehicle prices in May 2024 were nearly 1% below levels from the prior year.

In May 2024, the average cost of a new vehicle in the U.S. was $48,389, similar to the average transaction price (ATP) recorded in April 2024. Higher inventory in the U.S. — with a 51% increase from 2023 — has helped keep prices from rising. With 2.84 million new vehicles at the beginning of May, automotive inventory has reached the highest number since 2020.

Average prices may also vary depending on the vehicle type. In 2023, a new midsize sedan was much more affordable than a full-size pickup or full-size SUV, comparatively less than half the price for either.

The ATP for both new and used vehicles in 2024 is not consistent with the average consumer’s expectation. A 2024 survey shows that people are only willing to pay $22,090 for a new car and $18,464 for a used car.

How many people have car debt?

According to a survey conducted by GOBankingRates, 40% of Americans report having a monthly car payment. For many Americans with car debt, payments differ. Payments for 46% of car owners are between $301 and $500 per month, while around 25% pay under $300 each month. Only about 4% of people report having payments higher than $1,000.

Payments also vary by age. Over 50% of people between ages 25 and 44 and ages 65 and older paid between $301 and $500. No one over the age of 65 paid more than $1,000 per month on a car loan, while 7% of those ages 35 to 44 did so.

At the end of 2022, the Consumer Financial Protection Bureau reported that an estimated 100 million Americans had an auto loan. That means around 29% of people in the U.S. are paying off some auto debt.

How much of total debt is comprised of auto loans?

The total balance of auto loan debt in the U.S. rose $9 billion from the last quarter of 2023 to $1.62 trillion in the first quarter of 2024. Total auto debt has risen $54 billion from 2023 to 2024. Looking at the long term, in the last 20 years, total auto debt has climbed over $1 trillion, from $720 billion at the beginning of 2004.

Total auto loan debt in the U.S. has significantly risen, outpacing even the total student loan debt balance. In the first quarter of 2024, total auto loan debt was $3 billion higher than total student loan debt.

Car loan delinquency rates

From 2023 to 2024 in the U.S., 7.9% of auto loan balances have transitioned into delinquency.

In the first quarter of 2024, at 1.23%, 60-day delinquency rates were highest among cars for vehicles bought new and used. Sixty-day delinquency rates at 0.68% were also highest for gasoline vehicles much higher than the rate for electric, electric plug-in/gas and gas/electric hybrid vehicles.

References

1. Zabritski, M. “Q1 2024 State of the Automotive Finance Market.” Experian. Evaluated July 9, 2024.Link Here
2. “Driving Into Debt: The Hidden Costs of Risky Auto Loans to Consumers and Our Communities.” U.S. PIRG Education Fund. Evaluated July 9, 2024.Link Here
3. “Average auto loan debt in the United States from 2010 to 2023.” Statista. Evaluated July 8, 2024.Link Here
4. “Quarterly Report on Household Debt and Credit.” Federal Reserve Bank of New York, Center for Microeconomic Data. Evaluated July 10, 2024.Link Here
5. Kelly, R., et al. “Enhancing public data on auto lending.” Consumer Financial Protection Bureau. Evaluated July 9, 2024.Link Here
6. “Inflation Buster: New-Vehicle Prices Continue to Trend Lower, Are Down Nearly 1% Year Over Year in May, According to Kelley Blue Book Estimates.” Kelley Blue Book. Evaluated July 9, 2024.Link Here
7. “Data Tables for December 2023 Kelley Blue Book Average Transaction Prices Report.” Cox Automotive. Evaluated July 9, 2024.Link Here
8. Dasko, M. “More Than 40% of Americans Have Car Payments: Here’s How Much They’re Paying.” GOBankingRates. Evaluated July 8, 2024.Link Here
9. “Household Debt and Credit Report (Q1 2024).” Federal Reserve Bank of New York, Center for Microeconomic Data. Evaluated July 8, 2024.Link Here
10. Akin, J. “Good Debt vs. Bad Debt: What’s the Difference?” Experian. Evaluated July 10, 2024.Link Here
11. “ABS Auto Indices.” Fitch Ratings, Inc. Evaluated July 9, 2024.Link Here