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    Lending | 1 min read

    State of the 2021 Auto Lending Industry

    Earlier this year, industry experts released a report on the full picture of auto loan debt and trends in the country. Their research data included auto loan originations, prices, term lengths, delinquencies, and other aspects of auto debt in the U.S. Here are their most relevant findings:

    • The average monthly car payment in the U.S. is $563 for new vehicles, $397 for used vehicles, and $450 for leased vehicles.
    • Overall, Americans owe nearly $1.4 trillion in auto loan debt.
    • Auto debt makes up 5% of American consumer debt.
    • On average, Americans take out about $56 billion across 2.3 million new auto loans each month.
    • Americans borrow an average $34,635 for new vehicles and $21,438 for used vehicles.
    • The average loan term is 70 months for new cars, 65 months for used cars, and 37 months for leased vehicles.
    • At least 8% of outstanding auto debt is at least 90 days late and another 5.8% is 30 days overdue.
    • The average auto loan APR was 9.46% in 2020, but that ranged from an average of 5.49% for borrowers with the strongest credit to 22.66% for borrowers who are credit invisible.
    • People with 720-plus credit scores originate as much auto loan debtas the rest of the credit tiers combined: $28 billion a month.
    • Americans younger than 50 take out $35.6 billion in auto debt monthly, compared with the $22.6 billion auto debt of older generations.
    • Gen Xers are the most likely to have a car loan, and they carry the highest auto loan balances with a median of $19,223.
    • The average price of a new, light-duty vehicle is $39,259, a 1.3% increase over the same period a year prior. Average used car prices are over 1/3 less expensive—$22,351 at the end of January 2021.

    As 2022 creeps over the horizon, there is still more uncertainty than any of us would like in the auto lending industry—but the recovery seems to be going well, overall.

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    Tony Streeter

    As SVP of Marketing for the Financial Institution Group, Tony Streeter is responsible for product marketing across all lines of business (predominantly auto and mortgage risk management) geared toward the financial institution market. Over his 30+ year career, Tony has led new product development, Ecommerce platforms, digital marketing, patented various business processes, and has had 20+ articles published across IT, Marketing, Manufacturing, Financial and other topics within industry publications.

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