The average monthly payment for a new vehicle in the United States reached an all-time high of $770 in the first quarter of 2026, marking a 2.9% increase from the previous year, according to a LendingTree report citing Experian data [1]. Lease payments for new vehicles also rose, climbing 3.2% year-over-year to an average of $619, while used car payments increased by 1.5% to $531 per month [1].
Credit score tiers played a significant role in payment amounts. Nonprime borrowers (credit scores 601-660) paid the highest average monthly payment for new vehicles at $811, followed by subprime borrowers (501-600) at $792. Super-prime borrowers (781-850) had the lowest average payment at $753 [1]. The average auto loan amount for new vehicles was $43,925, up from $43,582 in the prior quarter, while the average used vehicle loan decreased to $27,070 from $27,528 [1]. Prime borrowers (661-780) took out the largest new vehicle loans at $46,244, and super-prime borrowers had the largest used vehicle loan amounts at $29,599 [1].
The report highlights that rising vehicle prices have contributed to growing loan balances. The Bureau of Labor Statistics' May CPI data showed new vehicle prices increased 0.2% year-over-year, while used car and truck prices fell 2% [1]. Outstanding auto loan debt nationwide reached $1.685 trillion in Q1 2026, a 57.3% increase from $1.071 trillion in Q1 2016, making auto loans the second-largest category of U.S. consumer debt at 9%, just ahead of student loans at $1.658 trillion [1].
Auto loan originations totaled $182.1 billion in Q1 2026, slightly up from $180.8 billion in Q4 2025 but below the Q2 2025 high of $187.9 billion. The record for auto loan originations was set in Q2 2021 at $201.9 billion [1]. Americans in their 30s and 40s originated the most auto loan debt in the first quarter [1].
CONCLUSION
The data underscores persistent affordability challenges for U.S. consumers as new car payments and overall auto loan debt continue to climb. With auto loans now the second-largest category of consumer debt, the trend signals ongoing financial pressure in the vehicle market and potential implications for broader consumer spending.