Average Auto Loan and Monthly Payments Hit Highest Amounts Ever
June 6, 2019
People looking to buy a car are taking out more money than ever before to do so, and racking up large monthly payments to match. Credit agency Experian said that the average amount borrowed to purchase a new car hit $32,187 in the first quarter, the highest amount on record. The average loan for a used car also hit an all-time high of $20,137. This has resulted in record high monthly payments to match. The average payment for new cars reached $554 for new cars and $391 for used cars in the first quarter.
With prices creeping ever higher, more consumers, even those with the highest credit scores, are opting for used cars. Experian says that in the first quarter 62 percent of those with a prime credit rating and 45 percent of those with a “super prime” rating took out loans to buy used cars. This is the highest percentage for these groups that Experian has ever recorded.