What is the average car payment by age?

Car payments vary by age: under 35 ($532/month), 35-44 ($565/month), 45-54 ($548/month), 55-64 ($510/month), 65-74 ($465/month), 75+ ($420/month). Younger buyers tend to borrow more for newer vehicles; older buyers often own vehicles outright or carry lower balances.

What is the average monthly car payment in the US?

The average monthly car payment for a new vehicle is approximately $735 and for a used vehicle approximately $524 in 2026. The overall average across all auto loans (new and used) is around $570/month.

Is $600 a month a lot for a car payment?

$600/month is above average for a used vehicle but below average for a new vehicle. The bigger concern is the percentage of income: financial experts recommend keeping total transportation costs (payment + insurance + gas) under 15% of take-home pay. On $5,000 take-home, that means $750 total.

At what age do people have the highest auto debt?

People in the 35-44 age range carry the highest auto loan balances on average, often buying larger family vehicles — SUVs, minivans — with longer loan terms. However, 25-34 year olds have the highest payment-to-income ratio, making auto debt most financially burdensome in younger years.

Average Car Payment by Age (2026 Data)

Auto loans are the second most common form of consumer debt in the US. Here is how car payments and loan balances break down by age group — and whether yours is typical.

Average Car Payment by Age Group

Age Group	% With Auto Loan	Avg Monthly Payment	Avg Loan Balance
Under 35	42%	$532	$22,800
35-44	46%	$565	$24,600
45-54	44%	$548	$23,200
55-64	38%	$510	$20,400
65-74	27%	$465	$17,100
75+	13%	$420	$13,900

New vs. Used Car Payments (2026)

Vehicle Type	Avg Monthly Payment	Avg Loan Amount	Avg Term
New vehicle	$735	$40,200	68 months
Used vehicle	$524	$26,800	67 months
Overall average	$570	$33,000	68 months

How Car Payments Have Changed

Year	Avg New Car Payment	Avg Used Car Payment
2019	$554	$391
2021	$626	$470
2023	$726	$516
2026	$735	$524

Auto Loan Statistics

Metric	Value
Total US auto loan debt	$1.6 trillion
Average auto loan term	68 months
% of new car buyers financing	85%
Average interest rate (new)	6.8%
Average interest rate (used)	11.4%
% who are underwater on loan	23%

Is Your Car Payment Too High?

The 20/4/10 Rule

Rule Component	Guideline
Down payment	At least 20%
Loan term	No longer than 4 years
Total transportation costs	Under 10% of gross income

Payment as % of Take-Home Pay

Monthly Take-Home	Max Recommended Car Payment (15% total transport)
$3,000	$450 total (payment + insurance + gas)
$4,000	$600 total
$5,000	$750 total
$7,000	$1,050 total

How to Reduce Auto Debt Costs

Strategy	Potential Savings
Buy used (2-3 years old)	Save $10,000-$15,000 vs. new
Put 20%+ down	Lower payment + avoid being underwater
Choose 48-month instead of 72-month	Less interest paid
Refinance existing loan	Lower rate can save $1,000-$3,000
Pay off early	Eliminates interest on remaining balance