Average monthly payments grow at the end of 2023

March 6, 2024

The average used vehicle monthly payment increased at the end of 2023 despite decreasing financed amounts and loan terms.

Experian’s State of Automotive Finance Market report showed that the average monthly payment was $532. That was up $2 from the $530 at the end of 2022.

The payment increase was due to an increase in finance rates from 10.36 percent to 11.93 percent.

The amount financed dropped from $27,907 to $26,685. The average term fell from 67.9 months to 67.4.

The average credit score for consumers purchasing a used car was 684, which was up from 681 in 2022.

The percentage of subprime borrowers fell to 21.5 percent.

Credit unions financed 29.59 percent of used vehicle purchases and banks 26.68 percent.

Among independent dealers, 33.18 percent of transactions were financed by buy-here pay-here dealerships. Financed companies financed 27.2 percent of transactions and credit unions 15.88 percent.

NIADA Author

The National Independent Automobile Dealers Association (NIADA) is among the nation’s largest trade associations, representing the used motor vehicle industry comprised of some 40,000 licensed used car dealers. Since 1946, NIADA has represented the voice and interests of used car dealers at the federal level in Washington D.C. Coupled with its state association network across the country, NIADA’s grass-roots framework provides a dual layer of advocacy unmatched in the used motor vehicle industry. For 75 years, NIADA has engineered programs and leveraged technology to fulfill its mission to advance, educate and promote the independent used car dealer. NIADA members subscribe to a strict Code of Ethics of duty, honor and integrity, and believe in the advancement of small business in support of the free-market system. More information about NIADA, visit www.niada.com.