U.S. New Car Loan Payments Hit $806 Monthly, Nearly 20% Pay Over $1,000

In March 2025, the average monthly payment for new auto loans in the U.S. reached $806, with 19.4% of financed vehicle buyers paying more than $1,000 per month. Most of these high-payment borrowers purchased premium models or pickup trucks, while mainstream non-pickup vehicles accounted for only 9.3% of such high-payment loans. Beyond rising vehicle prices, negative equity trade-ins have also driven up monthly payments. When the outstanding balance on a trade-in vehicle exceeds its market value, the difference is often rolled into the new loan. In March, 31.2% of used-vehicle trade-in transactions involved negative equity—up from 24% in 2024 and 26% at the beginning of 2025. To ease monthly payment burdens, consumers are increasingly opting for longer loan terms. In March, loans with terms of 84 months or longer accounted for nearly 13% of new vehicle sales. Pickup trucks represented 34.1% of these extended-term loans—far exceeding their 18.4% share of total new vehicle sales. Meanwhile, 72-month loans made up 40.5% of new vehicle sales. Data shows that among buyers who chose 84-month loans, 44.6% traded in their vehicles again within three to four years after purchase, compared to about 20% across all new car buyers. Although longer loan terms reduce monthly payments, they increase total interest costs. There are currently no signs that U.S. new vehicle prices will decline in the near term, and monthly loan payments are expected to remain elevated.