The first quarter of 2026 saw the average new-car payment climb to an all-time high as American households continued to face affordability challenges in the broader economy. A LendingTree report, drawing on Experian data for Q1 2026, shows the typical monthly payment for a new vehicle rose 2.9% from a year earlier to a record $770. Lease payments on new vehicles rose even more, up 3.2% year over year to $619 on average in Q1. Used-car payments increased modestly, rising 1.5% to $531.
Credit-tier differences remained pronounced. Nonprime borrowers with scores between 601 and 660 paid the highest average monthly for a new vehicle at $811, while subprime borrowers with scores 501–600 paid $792. Super-prime borrowers (781–850) had the lowest monthly outlay for a new vehicle at $753. Prime borrowers, with scores 661–780, took out the largest new-vehicle loans, averaging $46,244.
The data also show how loan sizes align with risk. The average auto loan amount in Q1 was $43,925 for new vehicles and $27,070 for used vehicles, with the new-vehicle average rising from $43,582 in the prior quarter and the used-vehicle average dipping from $27,528. For used vehicles, super-prime borrowers carried the largest loan at $29,599.
Inflation dynamics and debt demands continued to shape the landscape. The latest CPI data from the Bureau of Labor Statistics for May indicated new-vehicle prices were up 0.2% year over year, while prices for used cars and trucks were down about 2% from a year earlier. Total auto loan debt rose to $1.685 trillion in Q1 2026, up 57.3% from Q1 2016, according to the Federal Reserve Bank of New York. Auto loan originations edged up to $182.1 billion in Q1 2026, modestly higher than Q4 2025 at $180.8 billion but below the $187.9 billion seen in Q2 2025, which had been the second-highest on record. The New York Fed notes that the peak originations occurred in Q2 2021 at $201.9 billion.
Americans in their 30s and 40s accounted for the largest shares of auto loan originations in Q1, with $38.6 billion and $40.0 billion respectively, narrowly surpassing those in their 50s at $38.3 billion. These dynamics illustrate how higher vehicle prices and financing costs sustain elevated monthly payments even as lending patterns shift with credit standing and vehicle type.
