The automotive industry has seen notable increases in average vehicle loan amounts and monthly payments over the past few quarters, as it continues to grapple with inventory shortages and other challenges.
According to Experian’s latest State of the Automotive Finance Market report, the average new vehicle loan amount increased 8.5% year-over-year, increasing to $37,280 in Q3 2021, from $34,682 in Q3 2020.
The average used vehicle loan amount saw a more significant increase—more than 20% year-over-year—jumping to $25,909 in Q3 2021, from $21,622 in Q3 2020. Similarly, average monthly payments increased, reaching $609 for new vehicle loans in Q3 2021, up from $565 in Q3 2020, and $465 for used vehicle loans, an increase from $401 over the same time frame.
With the ongoing inventory shortages disrupting the industry and causing vehicle prices to increase, some industry pundits have affordability concerns; however, it’s notable that 30- and 60-day delinquency rates remain low. Thirty-day delinquencies saw a minimal uptick during the quarter, increasing to 1.66% compared to 1.65% in Q3 2020, while 60-day delinquencies remained flat at 0.55% year-over-year.
