The average car loan amount in the U.S. has been on the rise since new vehicles tend to get more expensive as time goes on. More expensive new vehicles typically lead to more expensive used cars, and everything rises.
Right now, both new and used car loan amounts are growing. Here's what we know about current average car loan amounts.
In September 2025, the average transaction price for a new car exceeded $50,000 for the first time, according to Kelley Blue Book. In the third quarter, it rose to $50,080. This is the amount that the whole transaction costs, not just the amount of the loan you're receiving. This amount is driven by luxury car shoppers and wealthy Americans, which is shifting the market.
"The $20,000-vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market. Today's auto market is being driven by wealthier households who have access to capital, good loan rates, and are propping up the higher end of the market," said Erin Keating, executive analyst for Cox Automotive. "Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory. We've been expecting to break through the $50,000 barrier. It was only a matter of time, especially when you consider the best-selling vehicle in America is a pickup truck from Ford that routinely costs north of $65,000."
With the transaction price for vehicles on the rise, it's only logical that the average loan amount is as well.
The average loan amount varies depending on whether you're purchasing a new or used car, and it can also depend on the type of vehicle you purchase.
The average loan amount for a new vehicle in the third quarter of 2025 was $42,332. This is even more than the peak financed amounts of $41,541 that we saw in Q3 2022, according to the latest Experian State of the Automotive Finance Market Report.
Average loan amounts are now the highest they've ever been.
Used financing is also trending upward this year. The average loan amount for a used car in Q3 2025 was slightly more than it was a year ago – $27,128 compared to $26,303 in the same quarter of 2024.
As new technology and more advanced vehicles arrive, consumers are seeing the costs for these cars and SUVs rise. Much of this is due to inflation's impact on manufacturing costs and consumer demand for premium services and features, such as hands-free driving and adaptive cruise control. However, with these features come increased costs, so loan amounts go up with rising vehicle prices.
With new vehicles costing more, people tend to look for ways to save money each month, which often leads to an extended loan term. If you stretch your loan term to 72 or 84 months, you're lowering your monthly payment but increasing the amount of time, and therefore, the amount of interest you pay on your loan, ultimately making your loan amount larger.
As we mentioned, whether you're financing a new or used vehicle makes a difference in the average loan amount. Comparatively, it's much more affordable to finance a used car than a new one, as a general rule.
Additionally, we can break that down even further to see which type of used vehicle will save you the most. Obviously, purchasing an economy sedan is a bigger money saver than a luxury SUV or a truck. However, the average loan amount for things like sedans can vary greatly – they typically ranged from around $23,000 to $47,000 in 2024, depending on make and model, according to the car valuation website Kelley Blue Book.
Because the average MSRP is higher for new cars and SUVs, more people have to finance them, so therefore, more new cars are financed than used ones. According to Experian, 80.67% of new cars were financed in the second quarter of 2025, compared to just 35.48% of used vehicles.
Your credit score is a big factor in determining the loan you may qualify for. Average loan amounts can vary by credit score since your score directly impacts your ability to borrow money – the higher your credit score, the larger a loan you're likely to be approved for, assuming the other factors involved are in line, like your debt-to-income ratio.
For new cars, the average amount financed by credit tier shows that those with the best credit (Super Prime 781-850) tend to take on slightly less when it comes to financing than those with slightly lower credit (Prime 661-780). This could be due to the fact that they may have the ability to provide more money upfront, thus lowering the amount borrowed.
According to Experian, the average loan amounts for new cars by credit tier for Q3 2025 are:
For used vehicles, you're looking at a significantly lower amount financed:
The average loan amount you're qualified for can affect you in several ways. For instance, a higher average loan amount means that you will make higher payments, and this can impact your budget for up to seven years (84 months), depending on your loan term. A longer loan also means more interest charges, which means higher loan amounts.
Having a larger loan also means you need more income to cover this debt; a larger loan amount can negatively affect your DTI. Plus, if your loan amount is too high and you begin to have trouble making payments, it could lead to loan default, repossession, and damage to your credit report and scores.
Many things can influence the amount of an auto loan that you may qualify for. The biggest factor is typically your credit score. Those with higher credit scores usually get approved for higher loan amounts since they're seen as less risky borrowers.
Besides your credit score, here are a few other things that will impact the amount of your car loan.
Remember that the loan amount that you're approved for is ultimately up to the lender and your situation.
To avoid over-borrowing, it's important to know your budget and take into consideration all the factors of a loan before you dive in. The cost of buying a car is much more than the price on the window sticker.
To ensure that you don't stretch yourself too thin financially, it's a good idea to calculate your DTI or use a car loan estimator online to see how much loan you may be able to afford.
You should also be sure to look at your credit. If you're already struggling, choosing an affordable vehicle that won't drive up your DTI too much is key. Know that if you have a lower credit score, you're not likely to be approved for as high a loan amount, and will likely have to choose a vehicle after finding out whether you're approved.
Another good tip for avoiding over-borrowing is to put down the largest down payment you can comfortably afford. A good rule of thumb is to strive for a 20% down payment at a minimum.
However, bad credit borrowers may only need to provide a 10% down payment or at least $1,000, depending on the lender.
The average loan amount in the U.S. currently sits between almost $21,000 and $45,000, but the amount you are eligible for will depend on your situation. If you have bad credit, know that your loan amount may not be as high as you'd like and that it can take more preparation to be approved for an auto loan with bad credit.
If you're struggling to find the right auto loan, knowing where to start your search is key. The loan amount you're approved for depends heavily on your credit score, how you've handled car loans in the past, and whether or not you're working with the right type of lender. So, if your credit score is not the best, it doesn't mean you can't get financed; it just means you may need to take a few more steps and temper your expectations.
To start your journey toward the vehicle you need, make sure you get connected to the right dealership for your situation; not all lenders work with all credit types.
Sources: Experian, Kelley Blue Book
Senior Automotive Financing Editor
Meghan is expertly versed in automotive special financing and pricing analysis, having published hundreds of articles on Auto Credit Express and its sister sites, CarsDirect, and The Car Connection over the past decade. She began her career as a sports writer for the local newspaper in her hometown nearly 30 years ago, and has enjoyed writing ever since. Read more
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