CHARLOTTE, N.C. — The average monthly payment for a new vehicle reached a record high during the first quarter of 2026, underscoring ongoing affordability pressures facing American consumers, according to a new report from LendingTree citing data from Experian.
The report found the average monthly payment on a new vehicle increased 2.9% from a year earlier to an all-time high of $770 during the first quarter.
Lease payments also climbed, rising 3.2% year over year to an average of $619 per month, while average monthly payments for used vehicles increased 1.5% to $531, according to the report.
LendingTree said borrowers with nonprime credit scores were making the highest monthly payments for new vehicles.
Average Payment by Credit Tier
Average monthly payments for new vehicles by credit tier included:
- Nonprime (601-660): $811
- Subprime (501-600): $792
- Super-prime (781-850): $753, the lowest average monthly payment
The report also found that consumers continued to finance increasingly expensive vehicles.
During the first quarter:
- The average new vehicle loan totaled $43,925, up from $43,582 in the previous quarter.
- The average used vehicle loan was $27,070, down from $27,528 in the prior quarter.
Prime Borrowers are Biggest Borrowers
Prime borrowers, with credit scores between 661 and 780, took out the largest average loans for new vehicles at $46,244, while super-prime borrowers financed the largest used vehicle loans, averaging $29,599, according to Experian.
LendingTree said rising vehicle prices have contributed to growing loan balances. The latest Consumer Price Index data from the U.S. Bureau of Labor Statistics showed new vehicle prices were 0.2% higher in May than a year earlier, while used car and truck prices declined 2% over the same period.
Balances Also Grow
Auto loan balances have continued to grow over the past decade as well.
According to data from the Federal Reserve Bank of New York cited by LendingTree, outstanding U.S. auto loan debt reached $1.685 trillion in the first quarter of 2026, up 57.3% from $1.071 trillion in the first quarter of 2016.
Auto loans now account for approximately 9% of all U.S. consumer debt, making them the nation’s second-largest category of household debt at $1.685 trillion, narrowly surpassing $1.658 trillion in student loan debt. Mortgages remain the largest category, representing 70.2% of total consumer debt, according to the report.
Increase in U.S. Auto Loan Debt
Separately, U.S. auto loan debt increased by $31 billion during the third quarter, accounting for nearly 25% of the overall rise in consumer debt, according to a Kroll Bond Ratings report.
The increase returned outstanding auto loan balances to levels last seen in 2007, reflecting continued growth in vehicle lending, the report said.
According to Kroll’s Consumer Credit Update, auto loans are now the second-largest category of consumer debt excluding mortgages and home equity loans, trailing only student loans. Credit card debt, which was the largest non-mortgage consumer debt category through 2009, has since fallen to third place.
Overall, U.S. consumer debt rose 1.1%, or $127 billion, during the quarter to reach $11.3 trillion.
Kroll described the increase as the first substantial rise in total consumer debt since the third quarter of 2008.
Despite the recent growth, total consumer debt remained 11.0% below its third-quarter 2008 peak of $12.7 trillion as of Sept. 30, according to the report.
