Used car buyers paid an average rate of 11.19% on vehicle loans in the second quarter of 2026, according to Experian. The average monthly payment was $542. Rates varied widely by credit tier, with super prime borrowers averaging 6.29% and subprime borrowers averaging 19.10%.
On Oct. 28, the Federal Open Market Committee held its target range for the federal funds rate at 3.75% to 4%, saying that “inflation remains elevated.” Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point increase. The committee next meets Dec. 8–9.
Auto credit availability edged up for a sixth straight month in October, according to Cox Automotive’s Dealertrack Credit Availability Index. The overall index reached 107.1, its highest level since April 2015. In the independent used channel, the index dipped 0.1% from September but was up 8.1% from a year earlier. Across the auto loans Cox tracks, the average contract rate rose from 11.22% in September to 11.46% in October. The share of loans with terms longer than 72 months eased to 31.1% from September’s record 31.8%.
U.S. auto loan balances rose $21 billion to $1.734 trillion in the third quarter, according to the New York Fed’s Nov. 10 report. The share of balances moving into early delinquency edged up, while the share moving into serious delinquency held steady from the prior quarter. In a separate analysis of securitized auto loans to borrowers with FICO scores below 660, LoanTape found that 7% of balances were at least 60 days past due in September, up from 6.24% a year earlier and 3.43% in September 2019.
For independent dealers, wider credit access than a year ago can help more customers find financing, while elevated rates still make it harder to fit a vehicle into a buyer’s budget. For buy here, pay here dealers, the rise in early delinquencies is a reason to watch how quickly accounts on their own books fall behind.
