Average car payments in 2026: What to expect

Monthly car payments continue to hit record levels for both new and used cars.

The overall cost of car ownership remains elevated due to steep insurance and car maintenance prices in addition to the cost of a loan.

Good credit scores are key to qualifying for the best auto loan rates and driving away with a competitive monthly payment.

New car prices remain steep, with monthly payments for new cars soaring to the highest levels ever recorded. Amid this environment, buyers are taking on increasingly larger loans to make vehicle purchases, and some are also stretching repayment over a longer timeline — in some cases, up to seven years.

Whether you have poor credit or are looking to refinance your current loan , it's important to understand typical monthly payments and rates so you can feel confident that you are getting the best deal. While auto loan rates in 2026 are projected to lower slightly, it won't be enough to put a serious dent in the many factors that are driving up the cost of car ownership, including continued high cost of auto insurance and maintenance expenses.

The average monthly car payment for a new car was $765 in the second quarter of 2026, while used cars had a slightly lower average of $542, according to data from Experian.

New car payments over $1,000 now make up 18.31% of all new car loans and 4.95% of used car loans.

This increase in monthly payment is due in part to the high cost of cars, with loan amounts for new cars averaging $43,610 in the middle of 2026, up from $42,582 at the end of 2025.

Banks are the most common choice for financing new and used auto loans (27.15%), but captive finance companies (26.26%) and credit unions (20.38%) follow closely behind.

What is the average monthly car payment?

The average monthly payment for new cars sat between $700 and $800 in the second quarter of 2026, according to Experian . Used cars had a smaller range, from around $500 to a little over $550.

Source: Experian State of Automotive Finance Market, Q2 2026

Although the current average monthly payment for a new and used car is $765 and $542, respectively, car payments are based on more than just the cost of the vehicle. You can calculate your car payment based on the amount you borrow, your annual percentage rate (APR) and loan term.