U.S. New Car Payments Hit Record $770 a Month in Q1 2026
Updated
Updated · Fox Business · Jul 6
U.S. New Car Payments Hit Record $770 a Month in Q1 2026
3 articles · Updated · Fox Business · Jul 6
Summary
$770 became the average monthly payment for a new vehicle in the first quarter, up 2.9% from a year earlier and marking a record for U.S. households.
Higher vehicle costs and affordability strain drove balances up: average new-car loans reached $43,925, while leases climbed 3.2% to $619 and used-car payments rose 1.5% to $531.
Nonprime borrowers paid the most for new vehicles at $811 a month, ahead of subprime borrowers at $792, while super-prime borrowers had the lowest average payment at $753.
Auto debt totaled $1.685 trillion in Q1 2026, up 57.3% from a decade earlier and now slightly above the $1.658 trillion in student debt, making it the second-largest consumer debt category.
Originations reached $182.1 billion in the quarter—up from late 2025 but below last year's peak—with borrowers in their 30s and 40s taking out the most new auto debt.