--- title: "The Average American Spends $748 per Month to Finance a New Car" date: "2025-12-19" modified: "2025-12-19" authors: - name: "Byron Hurd" job_title: "Editor" link: "https://www.thedrive.com/authors/byron-hurd" url: "https://www.thedrive.com/news/the-average-american-spends-748-per-month-to-finance-a-new-car" categories: - "Car Buying" - "News" --- # The Average American Spends $748 per Month to Finance a New Car ![Cars are seen at a Hyundai dealership in Houston, Texas, on March 27, 2025.]() *\Ronaldo Schemidt/Getty Images\* A lot of us grew up in a world where a car payment that could rival a mortgage was the domain of luxury-car buying. These days, the gap in finance costs between the two appears to be shrinking rapidly for everybody. At the end of Q3, the average monthly new-car loan payment in the United States ticked up to $748. Says who? Some random finance company you've never heard of? Ah, no. This time, [it's from Experian]()—the folks who can see your credit reports. I'm going to go out on a limb here and say their data on this sort of thing is *probably* pretty good. These days, a loan is pretty much *the* way people buy cars. 80% of new-car purchases are financed, Experian says, along with about 35% of used-car purchases. The average new-car loan (which is usually, but not always, lower than the actual purchase price) is now north of $42,000, while the typical used-car principal is now just a smidge over $27,000—not typical buy-here, pay-here numbers, in other words. While these financing terms may seem incomprehensible to older shoppers, the marketplace has shifted dramatically in recent decades. It's no secret that cheap cars are borderline extinct. The average new car [costs about $50,000]() in the waning days of 2025, but even with inflation cooling elsewhere in the economy, tariff pressures and expiring electrification credits are [pushing car prices in the other direction](). To keep financing affordable in the face of rising costs, banks have leaned into longer loan terms. The average for a new car is now nearly 70 months (just under six years), suggesting that 72-month loans have effectively become the default. Used-car loan terms are only two months shorter on average. *Got a news tip? Let us know at tips@thedrive.com!* ## Author Byron is an editor at The Drive with a keen eye for infrastructure, sales and regulatory stories. He brings a light, punchy style to all of his content, believing that there's plenty out there to be laughed at—himself included. Born and raised in Maryland but now based just a stone's throw from Detroit, Byron is an auto enthusiast and generalist who enjoys building and tinkering with things of all kinds, from cars, computers and digital cityscapes, to the new garage that will soon house his fleet (a CT4-V Blackwing, a JK Wrangler and an NA Miata). Inspired by an early love of rollercoasters, Byron quickly caught the high-performance driving itch. He's been tracking and auto-crossing his cars since 2007. In his downtime, Byron enjoys reading, playing city builders, and studying the history of the Motor City. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()