Wealthy PotAverage Car Payment in 2026: New, Used, and by Credit Score
If your car payment feels high, you have company. In the second quarter of 2026 the average new car payment was $765 a month and the average used car payment was $542, according to Experian's State of the Automotive Finance Market report. Both are up from a year earlier. This page breaks those averages down by credit score, shows what drives them, and does the math on the one choice that quietly costs buyers the most: the loan term.
Car Payments at a Glance
Those payments sit on top of big loans. The average new car loan in Q2 2026 was $43,610, up $1,715 from a year earlier. The average used car loan was $27,852, up $875. Rates actually fell slightly over the same year (from 6.79% to 6.35% on new cars and from 11.57% to 11.19% on used), but larger balances more than offset the relief, so payments still went up.
New vs Used: The Full Picture
| Q2 2026 average | New car | Used car |
|---|---|---|
| Monthly payment | $765 | $542 |
| Same quarter a year earlier | $749 | $532 |
| Loan amount | $43,610 | $27,852 |
| Interest rate | 6.35% | 11.19% |
| Loan term | 69.5 months | 67.9 months |
| Average borrower credit score | 751 | 688 |
| Share of purchases financed | 83.32% | 37.44% |
Two things stand out. First, used car loans cost almost twice as much in interest per dollar (11.19% against 6.35%). Part of that is the car, since lenders price older collateral as riskier. Part of it is the borrower: the average used car borrower's score was 688, against 751 for new. Second, most new cars are financed but most used cars are not. Only about 37% of used car buyers took a loan, compared with 83% of new car buyers.
Leasing is its own lane. Experian found the average new-car loan payment was $148 a month higher than the average lease payment in Q2 2026. A lease payment is lower because you pay only for the depreciation you use, but you own nothing at the end. Run both paths through our lease vs buy comparison before you decide.
Average Car Payment by Credit Score
You might expect the lowest payments to go to the best credit. For new cars, that is only partly true. Borrowers with the strongest scores often borrow less and choose shorter terms, while mid-tier borrowers stretch both.
| Credit tier (VantageScore 4.0) | New payment | New APR | Used payment | Used APR |
|---|---|---|---|---|
| Super prime (781-850) | $741 | 4.41% | $534 | 6.29% |
| Prime (661-780) | $770 | 6.15% | $528 | 8.81% |
| Near prime (601-660) | $816 | 9.71% | $555 | 13.93% |
| Subprime (501-600) | $805 | 13.52% | $567 | 19.10% |
| Deep subprime (300-500) | $779 | 16.11% | $570 | 21.62% |
The payment column hides the real gap, which is in the rate column. Deep subprime borrowers paid 16.11% on new cars and 21.62% on used, several times what super prime borrowers paid. Their payments look similar only because they borrowed less: $36,713 on average for a new car, against $41,667 for super prime.
Here is what the rate difference alone does to the same loan. These figures are a hypothetical illustration: a $30,000 loan over 60 months at each tier's average new-car rate.
Same car, same loan: interest by credit tier
Total interest on $30,000 over 60 months (hypothetical), at each tier's Q2 2026 average new-car rate
Rates from Experian, Q2 2026. Interest is our amortization math with no fees or taxes; the table below has the monthly payments.
| Rate (tier average, new car) | Monthly payment | Total interest over 60 months |
|---|---|---|
| 4.41% (super prime) | $558 | $3,484 |
| 6.15% (prime) | $582 | $4,925 |
| 9.71% (near prime) | $633 | $7,988 |
| 13.52% (subprime) | $691 | $11,436 |
| 16.11% (deep subprime) | $731 | $13,878 |
Same car, same term: the deep subprime borrower pays roughly $10,400 more in interest than the super prime borrower. That is why improving your credit before you shop is often worth more than haggling a few hundred dollars off the price. See what moves your credit score and how your score compares for your age.
The Term Trap: What a Longer Loan Costs
The average new car loan now runs almost six years (69.5 months). Longer terms are how buyers make big loans fit a monthly budget. The cost shows up later, in interest and in time spent owing more than the car is worth.
| Term | Monthly payment | Total interest |
|---|---|---|
| 48 months | $709 | $4,050 |
| 60 months | $585 | $5,093 |
| 72 months | $502 | $6,155 |
| 84 months | $443 | $7,238 |
Stretching from 48 to 84 months cuts the payment by about $266 a month but adds about $3,190 in interest. In practice the gap is usually wider, because lenders often charge a higher rate on longer terms. The bigger risk is negative equity: a new car loses value fastest in its first years, and a slow-paying loan can leave you owing more than the car would sell for if you need to trade it in early.
How to Pay Less Than Average
- Get pre-approved before the dealership. A rate quote from a bank or credit union gives you a number to beat. Experian found credit unions produced the largest average savings on auto refinances in Q2 2026 ($102 a month).
- Shorten the term, not just the price. Model 48, 60 and 72 months side by side in the auto loan calculator and look at total interest, not only the payment.
- Put more down. Every dollar you don't borrow is a dollar you don't pay interest on, and it protects you against negative equity.
- Consider a lightly used car. The used average loan is about $15,800 smaller than the new one. Watch the rate, though: used car rates run higher.
- Refinance if rates have dropped or your credit improved. Refinancing borrowers in Q2 2026 moved from an average 10.40% rate to 7.97%, saving about $83 a month.
Sources & Methodology
- Experian press release, August 27, 2026: headline Q2 2026 figures for payments, loan amounts, rates, the loan-versus-lease gap, refinancing and delinquencies.
- Experian, Average Car Payment in 2026: breakdowns by credit tier from the same Q2 2026 report.
- BLS Consumer Expenditure Surveys, 2024: household vehicle insurance spending.
Where Experian's own pages disagreed, we used the figure that appeared in both the press release and the data table. Experian's article text gives the used car payment as $531 in one place, but its table and the press release both give $542, so we use $542. We did not publish Experian's loan-term-by-tier figures because its text and table give different numbers. The worked examples are our own amortization math and are labeled hypothetical. Averages describe the market, not what any lender will offer you.
FAQ
What is the average car payment in 2026?
In Q2 2026 the average payment was $765 a month for a new car and $542 for a used car, according to Experian.
What is a good car payment?
One you can afford alongside insurance, fuel and maintenance without cutting savings. Being below the $765 new or $542 used average is not the test; the share of your take-home pay is.
Why are used car loan rates higher than new?
Lenders see older vehicles as riskier collateral, used car borrowers have lower average credit scores (688 against 751 for new), and new cars often qualify for promotional financing from the manufacturer's lender.
How long is the average car loan?
About 69.5 months for new cars and 67.9 months for used cars in Q2 2026.
Does a higher credit score always mean a lower payment?
It means a lower rate. Payments also depend on how much you borrow and for how long, which is why near prime new-car borrowers ($816) paid more per month than super prime ones ($741).
This article is for general information and is not financial advice. Figures come from Experian's Q2 2026 report and were checked on 2026-09-23. Worked examples are hypothetical. Your rate, payment and total cost depend on your credit, lender, vehicle and term.
