Key takeaways – Monthly car payments continue to hit record levels for both new and used cars. – Auto loan interest rates have decreased and reached their lowest levels since 2023. – The overall cost of car ownership remains elevated due to steep insurance and car maintenance…
ices in addition to the cost of a loan. – Good credit scores are key to qualifying for the best auto loan rates and driving away with a competitive monthly payment. New car prices remain steep, with monthly payments for new cars soaring to the highest levels ever recorded
Amid this environment, buyers are taking on increasingly larger loans to make vehicle purchases, and some are also stretching repayment over a longer timeline — in some cases, up to seven years. Whether you have poor credit or are looking to refinance your current loan, it’s important to understand typical monthly payments and rates so you can feel confident that you are getting the best deal. While auto loan rates in 2026 are projected to lower slightly, it won’t be enough to put a serious dent in the many factors that are driving up the cost of car ownership, including continued high cost of auto insurance and maintenance expenses.
Car payment statistics – The average monthly car payment for a new car reached $770 in the first quarter of 2026, while used cars had a slightly lower average of $531, according to data from Experian. – New car payments over $1,000 now make up 18.96% of all new car loans and 8.71% of new car leases. – This increase in monthly payment is due in part to the high cost of cars, with loan amounts for new cars averaging $43,925 at the beginning of 2026, up from $42,582 at the end of 2025. – Banks are the most common choice for financing new and used auto loans (28.42%), but captive finance companies (26.83%) and credit unions (20.09%) follow closely behind. What is the average monthly car payment? The average monthly payment for new cars sat between $700 and $800 in the first quarter of 2026,…