Auto Loan Balances Rise as Longer Financing Terms Reach Record Share
About one in four Americans carried auto loan or lease debt at the end of 2025. Average loan balances and financing terms continued to increase through the first quarter of 2026.
marketwatch.comRoughly 86 million Americans, or one in four, held auto loan or car lease debt at the end of 2025. The average origination balance for an auto loan reached $33,519 in December, up from $24,782 at the end of 2018. That figure increased further in the first quarter of 2026.
9 percent of financed new car purchases in the first quarter, an all-time high. 8 percent in the fourth quarter of 2025. 9 percent.
Extending loans to seven years or more lowers monthly payments but increases total interest paid. Borrowers also face the possibility that the vehicle will be worth less than the remaining balance. "Q1 financing data shows that car buyers are getting creative just to keep their purchases within reach," said Jessica Caldwell, Edmunds head of insights.
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