What's The Average Used Car Payment?

By

Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, Automotive Content Editor - December 20, 2021

According to the latest Experian reports, used car loan amounts have risen, and with them, the monthly payments consumers are facing. Payment amounts are up across all consumer credit tiers, but borrowers with middle-of-the-road credit are seeing the biggest impact year-over-year, with payments increasing by $73 a month on average. The average monthly loan payment for these near-prime consumers is $483 according to the State of the Automotive Market report for the third quarter of 2021.

For most consumers, payments have increased more than $50 a month year-over-year – the exception is those with top-tier credit, whose payments only rose $45 a month to $439. Additionally, monthly loan payments rose $64 to $476 for deep subprime consumers; $71 to 486 for subprime borrowers; and $63 to $457 for prime borrowers.

Used loan amounts have soared since 2020, increasing an average of $4,552 for near-prime borrowers with credit scores between 601 and 660. This jump puts the average used car loan amount up to $26,095 for these consumers. Prime borrowers are seeing even higher loans at $27,428.

Loan amounts are up across the board, reflecting the current state of the market – lower inventory leading to higher costs. With these higher loan amounts and payments, it's important to find the best deals you can. Many people often turn to used cars for this, but used cars are just as impacted by price increases as new cars right now.

Right now, financing a certified pre-owned vehicle through a brand's captive lenders may be a good way to get the lower rates you're seeking. Not all used cars are eligible for deals, but you might be surprised by what you can find.

For example, Toyota and Lexus are both currently offering deals starting at 0% APR for qualifying consumers. Toyota's CPO deal is good for select models, while Lexus is offering this deal for 36 months on model year 2017 - 2019 Lexus ESs.

Honda and Acura also offer low-APR deals for CPO buyers, starting at 0.99% for 36 months on used models from 2017 to 2021. If you're looking for longer to pay, Subaru CPO deals start at 2.49% for 48 months on 2018 - 2021 models, while Cadillac offers 60-month financing beginning at 2.9% APR on most used models.

This means that despite rising rates, some good offers still exist for those who qualify. See your local dealer for specifics.

See This Month's Best CPO Deals

, Automotive Content Editor

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


Privacy Policy|Do Not Sell My Personal Information|Terms of Use|Cookie Policy|Disclaimer|
COPYRIGHT 1999-2022 MH Sub I, LLC dba CarsDirect.com