31 Car Loan and Repossession Statistics for 2023

Geoff Cudd

We all know that car prices have gone up in the post-pandemic world, but we may not have considered how much the supply chain issues have affected car loans and repossessions.

Here are 31 statistics on car loans and repossessions for 2023.

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Key Car Loan and Repossession Statistics

1. TransUnion expects around 28.8 million U.S. auto loans to be originated in 2023, up around 5% from 2022.
2. Americans owe $1.52 trillion in auto loan debt, according to the Federal Reserve Bank of New York, which accounts for 9.2% of American consumer debt.

3. In December 2022, the number of subprime borrowers at least 60 days behind on their car payments hit 5.67%.
4. The average monthly payment for a new car is up 26% since 2019 to $718 monthly.
5. The average auto loan term is 69.7 months for new cars, 68.1 months for used cars, and 35.9 months for leased vehicles.
6. Auto loans average almost $42,000 for new vehicles.
7. Around 81.4 million individual American adults have a car loan.

Car Loan Payment Statistics

How much and how often are Americans paying their car loans? A lot.

Here are car loan payments by the numbers.

8. Average car payments in the U.S. increased year over year by double-digit percentages.
9. Car payments rose by 13.3% for new vehicles and 12.1% for leased cars last year.
10. Monthly car payments average $700 for new vehicles and $567 for leased vehicles.

11. Almost one in six new car buyers is spending more than $1,000 a month on vehicles.
12. In May 2021, the number of subprime borrowers 60 days or more behind on their car payments hit a seven-year low of 2.58% (half of what it was in 2022.)

Used Car Loan Statistics

Luckily, used car loan numbers have not gone up quite as much as their new car counterparts.

But they’re still not cheap.

13. Americans borrowed an average of $28,506 for used vehicles, according to Experian.
14. Car payments rose by 11.2% for used vehicles last year.

15. Monthly car payments average $525 for used cars.
16. Borrowers with credit scores in the prime tier (661 to 780) take out the most for used cars at $30,222.
17. About 5% of consumers who financed a used car toward the end of 2022 are paying over $1,000 per month.
18. “Buy-here, pay-here” businesses own 16.2% of the used car financing market.

Demographics of Car Loans Statistics

Who’s taking out these car loans? Millennials and Nor’easterners.

To be more specific:

19. Americans younger than 50 take out $38.5 billion in auto debt monthly.
20. Americans 50 years and older take out $22.4 billion in auto debt each month.
21. 38% of Millennials say they are currently making auto loan payments.

22. Men are 7% more likely to be in the market for an auto loan in the first half of 2023.
23. Only 24% of Baby Boomers currently have an auto loan, smaller than the 31% US average.
24. The region with the lowest percentage of car loan borrowers is the West, with only 26% of adults saying they currently had a car loan.
25. The Northeast has the highest percentage of loan borrowers, with 33% currently paying for a car loan.

Car Loans Vs Other Debt

Car loans have nothing on mortgages, but how do they stack up against the other leading causes of debt?

26. Mortgages come in at the top of all US individual debt, making up 71% of America’s debt. This is followed by student loans at around 10% and car loans in third place at 9.2%.

27. In 2022, auto loans accounted for on average of $1.52 trillion of total debt from loans, an increase from $1.43 trillion in 2021.

Repossession Statistics

Along with car loans increasing, an increase in repossessions is expected.

The numbers don’t look great right now, but experts say the repo numbers should level out in the next couple of years.

28. The number of repossession companies has shrunk by 30%.

29. Ally Financial said in its October earnings report that it expects auto loan delinquencies to increase to as much as 3.8% compared with 3.1% in 2019, leading to more repossessions.
30. For the third quarter of 2022, the percentage of auto loans that were overdue by 30 days was 2.2% compared to 2.35% in 2019.
31. Cox Automotive analysts predict that long-term through 2025, repossessions will remain at or below historical norms. Before then, we could see a peak.

Summary

The facts are, Americans are spending far more on auto loans today than ever before. Whether they’re driving a new car, financing a used vehicle, or paying for a lease, borrowers are spending trillions making monthly payments on their car loans.

While we will see more debt and repossessions in the next year or so, financial experts claim that by 2025, we will eventually see a leveling out of car repossessions.