- There are over 275 million vehicles on the road in the United States.
- Auto loan debt in the U.S. is currently at $1.5 trillion dollars.
- Auto loans are the second largest purchase for most people after a home.
- The average monthly auto loan payment for a new vehicle is expected to increase to $725 in 2023.
- Complaints and lawsuits have been filed against lenders for alleged discriminatory and illegal practices.
- Auto loans are a lump sum of money given to purchase a car and must be paid back over time.
- Your credit score is an important factor in determining the interest rate and loan terms offered by lenders.
- Toyota Financial Services is currently the market leader for auto loans and leases in 2022.
Auto loans have become increasingly more expensive, with over 100 million Americans currently holding auto loan debt totaling $1.5 trillion, a record high. The average monthly auto loan payment for a new vehicle is projected to be $725 by 2023, up from $650.20 in 2022, while the average monthly payment for a used vehicle is projected to be $516 in 2023, up 2% from the prior year. Consumers often complain about the car buying experience, with complaints and lawsuits frequently arising against lenders for alleged discriminatory and illegal practices. Auto loans are typically lump sums of money given to purchase a car that must be paid back over time, with the lender holding the title until the loan is fully paid off. The interest rate and loan terms offered by lenders are largely determined by the borrower’s credit score, assets, liabilities, income, and expenses. Direct lenders include local banks, credit unions, and online lenders, while indirect lenders are car dealerships that provide financing options as part of the car buying process. Toyota Financial Services is currently the market leader for auto loans and leases in 2022.