Report: Auto Loan Amounts Rise as Vehicle Costs Soar

The average auto loan for a new vehicle in the United States rose to $40,290 in the second quarter of 2022, an increase of 13.2% over the same period a year earlier, the company reported today. Experian credit monitoring. The company noted that high vehicle prices are causing more consumers to turn to used vehicles.

According to Experian, the average monthly payment for a new vehicle loan in the second quarter of 2002 was $667, compared to $582 in the second quarter of 2021. Used vehicle loans grew faster than new vehicle loans, increasing up 18.7% year over year to $28,534, with an average monthly payment of $515. However, demand for used automobiles increased across all credit levels tracked by the company. “Between inventory shortages and rising vehicle costs, consumers are looking to make the most profitable decision, which is often a used vehicle,” said Melinda Zabritski, senior director of automotive financial solutions at Experian.

Credit unions have been the main beneficiaries of the shift in demand, with their market share in auto finance rising from 11.2% in the second quarter of 2021 to 21.4% this year. Banks’ market share declined slightly from 27.3% to 26%, while captive financial institutions still accounted for the largest share at 46%.

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