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Average used vehicle loan drops according to Experian

January 8, 2025

The average used vehicle loan dropped in the third quarter of 2024 from the same period in 2023.

According to Experian’s 2024 Third Quarter Automotive Finance Market report, the average used vehicle loan was $26,091. That was $1,195 below the average 2023 third-quarter loan. It was also $218 less than the second quarter amount.

The finance rate was slightly above the 2023 figure, rising from 11.56 percent to 11.74 percent. The average term dropped from 67.44 months in 2023 to 67.15 in 2024.

The average payment for the third quarter was at $520, $18 less than the third quarter of 2024.

The third quarter of 2024 did see a growth in subprime lending for used vehicle loans for the first time since 2019. Subprime lending grew from 17.9 percent in 2023 to 18.05 percent in 2024. Super prime and prime made up 60 percent of the used vehicle lending.

Credit unions provided 28.77 percent of used vehicle loans. Banks were at 28.09 percent. Buy-here pay-here providers were at 15.61 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.