Monthly auto loan payments above $1,000 are growing
CNBC • • business
Key Points:
- Nearly 19% of new vehicle loans now have monthly payments of $1,000 or more, up from 17.4% a year ago, according to Experian Automotive's analysis of over 5 million loans and leases.
- About 74% of these high-payment loans are for non-luxury models, mainly popular pickup trucks like the Ford F-150, Chevrolet Silverado 1500, and Ram 1500.
- The share of auto loans with payments over $1,000 has surged from 5.4% five years ago, driven by higher vehicle prices following the global chip shortage and automakers prioritizing higher-end models.
- The average amount borrowed for a vehicle is at a record $43,952, with the average monthly payment reaching an all-time high of $770, reflecting a strong auto market despite rising costs.
- Auto loan delinquency rates have slightly increased but remain below 2018 levels, with most delinquencies concentrated in the subprime borrower segment.