The average monthly payment for a new car reached an all-time high of $770 in the first quarter of 2026, as American consumers continue to grapple with economic affordability challenges. This marks a 2.9% increase from the previous year, according to a new report by LendingTree that analyzed Experian data.

Lease payments on new vehicles saw a steeper rise, increasing by 3.2% over the past year to an average of $619 in the first quarter. Payments for used cars also increased, though at a slower pace of 1.5%, reaching an average of $531 per month.

Payment Disparities Across Credit Tiers

Analysis of borrowers across different credit score ranges revealed significant payment variations. Nonprime borrowers, with credit scores between 601 and 660, incurred the highest average monthly payments for new vehicles at $811. Subprime borrowers, those with scores from 501 to 600, followed closely with an average payment of $792.

Conversely, super-prime borrowers, possessing credit scores from 781 to 850, had the lowest average monthly payment for new vehicles, standing at $753.

Loan Amounts and Vehicle Price Trends

The average auto loan amount in the first quarter of 2026 was $43,925 for new vehicles and $27,070 for used vehicles. The average loan for new vehicles saw a slight increase from the prior quarter's $43,582, while the average for used vehicles decreased from $27,528.

Borrowers in the prime credit tier (scores of 661 to 780) secured the largest loans for new vehicles, averaging $46,244. For used vehicles, super-prime borrowers took out the largest loan amounts, averaging $29,599.

These growing loan balances are attributed, in part, to elevated vehicle prices. While new vehicle prices saw a modest 0.2% year-over-year increase in May according to the Bureau of Labor Statistics, prices for used cars and trucks have decreased by 2% during the same period.

Auto Loan Debt Growth Over a Decade

Nationwide, outstanding auto loan debt reached $1.685 trillion in the first quarter of 2026. This figure represents a substantial 57.3% surge from the first quarter of 2016, when total auto loan debt stood at $1.071 trillion, according to data from the Federal Reserve Bank of New York.

Auto loans constitute 9% of U.S. consumer debt, totaling $1.685 trillion. This makes auto loans the second-largest category of consumer debt, narrowly surpassing the $1.658 trillion in student loan debt. Mortgages remain the largest segment of consumer debt, accounting for 70.2%.

Auto Loan Origination Trends

In the first quarter of 2026, auto loan originations amounted to $182.1 billion. This is a slight increase from $180.8 billion in the fourth quarter of 2025 but falls short of the $187.9 billion recorded in the second quarter of the previous year. The highest volume of auto loan originations on record was $201.9 billion in the second quarter of 2021.

Consumers in their 30s and 40s originated the most auto loan debt in the first quarter, with amounts totaling $38.6 billion and $40 billion, respectively. This narrowly exceeded borrowers in their 50s, who originated $38.3 billion. Individuals aged 18 to 29 and those in their 60s each originated $25.3 billion in auto loans during the same quarter.