A new report from LendingTree, drawing on Experian data, examined the first quarter of 2026.
Across credit score tiers, the highest new-vehicle monthly payments were made by nonprime borrowers (scores 601-660) at $811, followed by subprime borrowers (scores 501-600) at $792. Super-prime borrowers (scores 781-850) paid the least, $753. Experian data show the average loan amount for a new car was $43,925, and $27,070 for a used car.
The average new-car loan increased from $43,582 in the previous quarter, whereas the average used-car loan fell from $27,528. Prime credit borrowers (scores 661-780) secured the biggest new-vehicle loans, averaging $46,244. For used cars, super-prime borrowers had the highest average loan at $29,599.
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Data from the New York Federal Reserve reveals that total outstanding auto loan debt hit $1.685 trillion in Q1 2026, a 57.3% increase from $1.071 trillion in Q1 2016. Mortgages still dominate U.S. consumer debt at 70.2%, while auto loans make up 9% - $1.685 trillion, narrowly surpassing student loan debt of $1.658 trillion to become the second-largest category. New auto loan originations totaled $182.1 billion in Q1 2026, a slight uptick from $180.8 billion in Q4 2025 but below the $187.9 billion peak in Q2 2025.
The record for quarterly originations remains Q2 2021 at $201.9 billion. By age group, borrowers in their 30s originated $38.6 billion in auto loans, those in their 40s $40 billion, and those in their 50s $38.3 billion. Consumers aged 18-29 and those aged 60+ each originated $25.3 billion.
The steady rise in monthly payments reflects not only higher vehicle prices but also elevated interest rates that have persisted over the past few years. The slight 0.2% year-over-year increase in new vehicle prices, combined with scarce discounts, has pushed average loan amounts higher. Meanwhile, used car prices have fallen 2%, yet payments still rose 1.5%, suggesting that borrowers are financing larger amounts or facing higher rates.
In May, the Bureau of Labor Statistics reported that new vehicle prices rose 0.2% year-over-year, while used car and truck prices fell 2%. According to analysts, new car prices are climbing and promotions are harder to find, pushing costs upward.
The persistent rise in auto loan debt underscores a broader trend of consumers taking on more debt to finance transportation needs. With average loan amounts near $44,000 for new cars, many households are stretching their budgets, especially as interest rates remain elevated. This shift has implications for overall consumer financial health.
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