What Is the Average Monthly Car Payment?

What Is the Average Monthly Car Payment?

What Is the Average Monthly Car Payment?

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.