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Average new car payment reaches all-time high as affordability issues persist

Outstanding auto loan debt has surged 57.3% over a decade to nearly $1.7T, per the Federal Reserve Bank of New York

The average new car payment rose to an all-time high in the first quarter as American households continued to face affordability challenges in the economy.

A new report by LendingTree citing data from Experian for the first quarter of 2026 found that the average monthly payment for a new vehicle rose 2.9% from a year ago to a record of $770.

Lease payments on new vehicles rose at a faster rate, rising 3.2% over the last year to $619 on average in the first quarter.

Used car payments saw a smaller increase over the last year, rising 1.5% to an average monthly payment of $531.

Among borrowers with varying tiers of credit scores, the borrowers making the highest average monthly payments on new vehicles were nonprime borrowers with scores in the 601 to 660 range, who paid $811, followed by subprime borrowers with scores between 501 and 600 who paid $792.

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