Loading...

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.

Related Posts

Amid interest rates leveling out and some lenders reassessing go-to-market strategies, the automotive finance landscape is experiencing notable shifts in market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2025, banks recouped some of their total finance market share for the first time in several years, reaching 26.6% during the quarter, up from 24.8% a year ago. On the other hand, captives’ total market share declined from 31.3% to 29.8% year-over-year and credit unions experienced a modest increase from 20.2% to 20.6%. Despite the overall market share shifts, captives continue to lead in new vehicle financing at 57.1% in Q1 2025, although down from 62.1% the year prior. Meanwhile, banks increased to 24.1% this quarter, from 20.4% in Q1 2024 and credit unions went from 9.6% to 10.9% during the same period. On the used side, banks and credit unions were grouped much closer together. Banks led the way with 28.4% of the used finance market in Q1 2025, up from 27.9% last year, while credit unions went from 27.7% to 28.2% year-over-year and captives declined from 8.5% to 7.4%. As market share movement continues to be a valuable indicator of shifting strategies and consumer behavior, it’s important for automotive professionals to keep a close eye on these shifts to uncover new opportunities while looking for ways to stay ahead of the rapidly evolving industry. Breaking down the latest finance trends Data in the first quarter of 2025 shows the automotive finance market continues to stabilize as automotive professionals gain clearer visibility into lender behavior and consumer demand. For example, the average loan amount for a new vehicle increased $1,110 year-over-year to $41,720 in Q1 2025. However, the average interest rate dropped from 6.9% to 6.7%, and the average monthly payment went from $737 last year to $745 this quarter. For used vehicles, the average loan amount saw a slight uptick of $90 year-over-year, reaching $26,144 this quarter. Meanwhile, the average interest rate declined from 12.4% last year to 11.9% this quarter and the average monthly payment trended lower at $521, from $524 in Q1 2024. Monitoring and leveraging market share shifts and financing trends can support strategic planning while empowering automotive professionals to anticipate consumer purchasing patterns and tailor conversations more effectively to meet buyers where they are during their car buying journey. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2025 presentation on demand.

Published: June 5, 2025 by Melinda Zabritski

Vehicle price. Monthly payment. Loan terms. Interest rates. Those are the more prominent buzz words dealers hear from consumers throughout the vehicle shopping process, particularly in our current environment. And rightfully so, in-market shoppers are hoping to get the most value for their wallets. But let’s not forget how valuable transparency can be, especially with used vehicles. Hidden damage from accidents or natural disasters, as well as title brands, among other factors, can have a significant negative impact on the drivability of any given vehicle. Ensuring consumers have visibility to that information can help them make a more informed purchasing decision, and more importantly, help dealers potentially build a lifelong relationship with them. Plus, consumers want that information. According to a recent Experian survey [1], nearly all respondents (98%) said a vehicle history report is important to them when considering the purchase of a used vehicle. Furthermore, almost 70% said accident history information in a report would likely influence their purchasing decision, followed by frequent repairs (61%) and title problems such as salvage or flood damage (55%). Given the significance of used vehicles in the automotive market, having tools such as Experian AutoCheck® vehicle history reports readily available on dealership and manufacturer websites can help buyers make more informed decisions. Where today’s consumers start their vehicle search Knowing what resources consumers are using to search for their next vehicle plays a role in identifying where they’re gathering their information, and in turn, can help guide dealers in offering relevant information during the decision-making process. The survey revealed that 64% of consumers browse dealership websites and 46% look at manufacturer websites during their buying process. In a competitive market, having instant access to a vehicle’s history can help streamline the shopping experience while allowing buyers to feel more confident and drive conversions. Leveraging this information will allow businesses to tailor their consumer engagement strategies to meet the specific needs or concerns of potential buyers at each stage of the journey. To learn more, visit Experian AutoCheck® Vehicle History Reports. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The sample consists of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 24 and March 27, 2025.

Published: May 6, 2025 by Dalton Heath

While federal funding is being scaled back for community-based financial institutions, we are scaling up to support CDFIs and credit unions.

Published: March 28, 2025 by Corliss Hill

Subscribe to our Auto blog

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.