Year-Over-Year Increases for Vehicle Loan Amounts Stabilize in Q4 2022

Published: March 15, 2023 by Melinda Zabritski

In recent years, the automotive industry has witnessed average loan amounts spike due to ongoing inventory challenges. Though, in the fourth quarter of 2022, we are beginning to see numbers level out—a positive sign that the market is bouncing back.

Experian’s State of the Automotive Finance Market Report: Q4 2022 found that the year-over-year (YOY) average new loan amount increased 4.04%, a smaller growth rate compared to 12.46% YOY in Q4 2021, while the average used loan amount dropped from a 20.96% YOY increase last year to only a 1.38% YOY increase this quarter.

The average loan amount financed for a new vehicle increased to $41,445 in Q4 2022, from $39,834 in Q4 2021 and $35,420 in Q4 2020. On the used side, the loan amount increased to $27,768 this quarter, from $27,390 the previous year and $22,643 in Q4 2020.

While the loan amount increases weren’t as drastic compared to previous years, we are still witnessing considerable growth in average monthly payments due to increased interest rates.

In Q4 2022, captives offered a 5.45% interest rate for new vehicles, from 3.14% in Q4 2021 and credit unions increased from 3.61% to 5.49% year-over-year. Banks were considerably higher, with a 7% interest rate, a jump from 4.34% this time last year.

For used vehicles, credit unions had the lowest rate, coming in at 7.03% in Q4 2022, from 5.08% in Q4 2021—while captives and banks offered similar rates, with captives at 9.25% this quarter, up from 7.11% last year and banks having a 9.34% rate, from 6.47% in Q4 2021.

The increased rates resulted in the average monthly payment for a new vehicle hitting $716 this quarter, from $646 in Q4 2021, while the average monthly payment for a used vehicle was $526 in Q4 2022, up from $490 the previous year.

Staying up to date on the latest trends and data will enable automotive professionals to properly assist consumers who are currently in the market for a vehicle and ensure they find a monthly payment that fits their budget.

To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q4 2022 presentation on demand.

Why More Borrowers Are Refinancing Their Vehicles, and...

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In an ever-evolving automotive landscape, where shifting consumer behavior meets fluctuating market dynamics, Experian’s State of the Automotive Finance Market Report: Q2 2025 delivers key insights into how both consumers and professionals are adapting to the changes. This quarter’s report revealed a sharp increase in vehicle refinancing—up nearly 70% from Q2 2024—as consumers capitalized on the more stable rate environment. In fact, after refinancing, the average interest rate went from 10.45% to 8.45%. That shift resulted in their monthly payment dropping by an average of $71. Interestingly, credit unions played a significant role in the refinance surge, increasing their market share from 63.22% last year to 68.33% this quarter, and borrowers who refinanced through credit unions saw their monthly payments decrease by $87 on average. Banks saw a slight dip in their share of the refinancing market year-over-year, going from 22.71% to 21.45%, and borrowers who refinanced through them saved an average of $46 a month. New leaders emerge as the lender market share continues to evolve Taking a deeper dive into the automotive finance market share, banks reclaimed their leading position for total vehicle financing, rising to 27.50% in Q2 2025, from 24.50% in Q2 2024. Meanwhile, captives declined from 30.17% to 26.63% year-over-year, and credit unions slightly increased from 20.35% to 21.04% during the same period. For new vehicles, captives continued to lead at 52.39% this quarter, though it was a drop from 60.74% last year. On the other hand, banks grew from 21.12% to 25.91% and credit unions went from 9.99% to 12.24% in the same time frame. On the used side, banks edged ahead, increasing their share to 28.59% in Q2 2025, from 26.80% last year. Credit unions saw slight growth from 27.59% to 27.63%, while captives declined from 7.83% to 6.40% year-over-year. As affordability remains a key priority, consumers seem to be exploring financing options that offer more favorable terms. While Experian Automotive’s report continues to illustrate the evolving dynamics, these data-driven insights can empower both consumers and industry professionals to make smarter financial decisions. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q2 2025 presentation on demand.

Published: September 5, 2025 by Melinda Zabritski