Consumers keep up with rising loan payments
Delinquencies remain low as average loan amount increases.
The average new vehicle loan amount increased 8.5% in a year, according to Experian. The company’s latest State of the Automotive Finance Market report found that the average new vehicle loan amount increased from $34,682 in the third quarter of 2020 to $37,280 in the third quarter of 2021.
The average used vehicle loan amount increased even more, from $21,622 to $25,909 in the same time frame.
Larger loan amounts require consumers to make higher monthly payments. Average monthly payments for new vehicles increased from $565 in the third quarter of 2020 to $609 in the third quarter of 2021, and average monthly payments for used vehicle loans increased from $401 to $465 during this time.
Experian reports that inventory shortages are driving up vehicle prices. However, while prices have risen, customers are keeping up with their payments.
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