The average auto loan for a new vehicle in the U.S. rose to $40,290 in the second quarter of 2022, a 13.2% increase from the same period the previous year, the credit monitoring firm Experian reported today. The company noted that high vehicle prices are causing more consumers to turn to used vehicles.
The monthly average payment for a new vehicle loan in Q2 2002 was $667 compared to $582 in Q2 2021, according to Experian. Loans for used vehicles shot up faster than loans for new vehicles, rising 18.7% year-over-year to reach $28,534, with an average monthly payment of $515. However, demand for used automobiles rose among all credit tiers tracked by the company. “Between the inventory shortage and rising vehicle costs, consumers are looking to make the most cost-effective decision, which is often a used vehicle,” said Melinda Zabritski, Experian’s senior director of automotive financial solutions.
Credit unions have been the major beneficiaries of the shift in demand, with their market share in auto financing rising from 11.2% in Q2 2021 to 21.4% this year. Banks’ market share dropped slightly from 27.3% to 26%, while captive finance institutions still accounted for the largest share at 46%.
