According to Experian Automotive, the average monthly car payment for a new car in late 2013 was $471. For consumers purchasing a used vehicle, the average monthly car payment for the same period was $352.
The average car payment is on the rise thanks in part to increasing sales prices for vehicles. Borrowers with a sub-prime credit score (between 550 and 619) pay an average of $499 each month for their vehicles. Those in need of a lower monthly car payment can achieve this objective by improving their credit scores, taking out a car loan for a longer term and having a larger down payment. Six- and 7-year car loans are increasingly common and popular with buyers. While a longer loan term does decrease the monthly payment, it also costs buyers more money in interest over the term of the loan.