Yahoo Finance The Average Car Payments for New and Used Cars in 2024
As with almost everything else, car payments became much more expensive in the last year, and 2024 isn’t looking any better. Consumer Reports explained that the car market has become increasingly complicated because of continued disruptions to manufacturing, buying habits and unstable personal finances as a result of the COVID-19 pandemic.
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These issues have all resulted in measurable increases in car costs across the board. 40-year record high inflation is also to blame, with auto loan interest rates reaching their highest levels in decades.
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Increased Car Costs Heading Into 2024
Car payments are up heading into 2024, whether you’re looking for a new or used vehicle for purchase or lease. Overall, the cost of having and keeping a car has never been more expensive:
LendingTree reported that the average car payment for new vehicles was $726 per month as of Q3 2023. That’s a 3.6% ($25) increase from Q3 2022, when the average car payment was $701 per month.
At the same time, the average car payment for new vehicle leases was $597 per month as of Q3 2023, a comparable 4.6% ($26) increase from Q3 2022, when the average car payment was $571 per month.
The average car payment for used vehicles was $533 per month as of Q3 2023, which is a 0.8% ($4) increase from Q3 2022, when the average car payment was $529 per month.
It remains to be seen what the cost of these same payments will be towards the end of 2024.
Auto Loan Statistics in 2024
Here are some important stats to better understand the current car market in 2024, according to a recent press release from the Federal Reserve Bank of New York as well as their Q3 2023 Household Debt and Credit Report:
Total American Auto Loan Debt Has Reached About $1.595 Trillion: According to the Federal Reserve Bank of New York, overall vehicle debt has increased by 88.8% over the last 10 years. That’s an increase from $845 billion in Q3 2013 to $1.595 trillion in Q3 2023. Americans are now spending more on vehicles than ever before.
Auto Loan Debt Increased By $71 Billion Year Over Year: From Q3 2022 to Q3 2023, there was a $71 billion increase in auto loans in the United States, resulting in the total American auto loan debt noted above.
2.53% of Borrowers Reached Serious Delinquency On on Their Auto Loans As of Q3 2023: From Q3 2022 to Q3 2023, the number of borrowers who flowed into serious delinquency (90 days or more delinquent) increased from 2.02% to 2.53%. This represents about a 20% increase in borrowers who became delinquent on their auto loan payments year over year.
Median Credit Score of Newly Originated Auto Loans Increased To 719 From 716: The median credit score of auto loan borrowers increased by 3 points year over year.
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Owning or leasing a new or used vehicle has become quite costly all over the United States. If you’re looking to get a car, be sure to calculate your monthly budget carefully to ensure that the cost of having and keeping a car makes sense with your finances.
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This article originally appeared on GOBankingRates.com: The Average Car Payments for New and Used Cars in 2024
