Auto Loan Default and Repossession Statistics

Auto loan defaults and repossessions are rising across the United States, putting more pressure on borrowers already facing higher vehicle prices and interest rates.

This article examines the key figures behind auto loan debt, including monthly payment trends, repossession rates, and the consequences of a car being repossessed by the lender, based on the latest 2024 data. Whether you’re managing a loan or recovering from a default, the stats below provide a clear picture of how the market is shifting.

Key findings

Over 100 million Americans have an existing car loan, based on the latest Q3 2024 data, the same as in 2023.[1]
Americans owe over $1.64 trillion in auto loan debt, making it the second-largest form of consumer debt after mortgages, according to the latest Q3 2024 data.[1]
The average auto loan balance reached $24,297 in 2024, a 20% increase since 2019.[2]
The average car loan repayment was $662 per month in 2024, marking a 23.7% increase since 2020, when it was $535.[2]
In 2024, subprime borrowers agreed to the longest terms, with loans averaging over 74 months.[3]
Only 27% of repossession assignments were completed in 2022, showing many do not result in vehicles being taken back. A decrease from the 38% completed in 2019.[1]
Just 10 percent of completed repossessions in 2022 were voluntary, meaning the borrower handed back the vehicle instead of having it taken.[1]

How much auto loan debt do Americans owe?

Car loans are one of the largest forms of consumer debt in the U.S., behind only mortgages, showing the magnitude of auto loan debts. As of the third quarter (Q3) of 2024, outstanding auto balances totaled more than $1.64 trillion, covering over 100 million active auto finance accounts.[1]

Americans also continue to take on new auto debt at a steady pace. In April 2024, lenders originated approximately $63 billion in new auto loans, according to the Consumer Financial Protection Bureau (CFPB). This includes loans from banks, finance companies, and captive lenders (those associated with automakers).

What is the average auto loan debt?

As of Q3 2024, the average auto loan balance per consumer in the United States reached $24,297, according to Experian’s latest State of Auto Loan Debt Report.

Balances have increased each year over the past three years, rising from $22,612 in 2022 to $24,297 in 2024. This steady climb reflects both the impact of rising vehicle prices and the longer loan terms many borrowers now take on to make monthly payments more manageable.

Source: [2]

Auto loan debt can vary depending on several factors, including vehicle type and borrower profile. New car loans tend to result in higher balances than used vehicles, and borrowers with lower credit scores often take out longer loans at higher interest rates, which can push balances even higher.[2]

Auto loan balances by credit score

The average auto loan balances increased for all borrowers but the biggest rise was for those with exceptional credit scores (FICO score between 800 and 850).

The majority (65%) of consumers fall into fair, good, or very good credit score ranges, which only saw small increases.

This data demonstrates how the increase in auto balances between 2023 and 2024 affected borrowers across different credit scores. While higher credit usually means access to more favorable terms, the data shows that average auto loan balances still rose across every credit score tier in 2024.

Average Auto Loan Balance by FICO Score Range
Score Range	2023	2024	Change
Poor (300–579)	$21,166	$21,783	+2.9%
Fair (580–669)	$24,525	$24,815	+1.2%
Good (670–739)	$25,936	$26,441	+1.9%
Very Good (740–799)	$24,212	$24,830	+2.5%
Exceptional (800–850)	$21,799	$22,533	+3.4%

Source: [2]

Borrowers with exceptional credit saw the biggest increase at 3.4%, likely reflecting access to better financing terms that support larger purchases. On the other end, those with fair credit (580–669) had the smallest rise (1.2%), suggesting tighter borrowing limits. Interestingly, balances for borrowers with poor credit also rose sharply, increasing by 2.9%, which could point to affordability pressures forcing riskier borrowers to take on more debt despite high interest rates.[2]

What is the average monthly auto loan payment?

As of Q2 2024, the average monthly auto loan payment in the U.S. stood at $662, a 5.1% increase from the previous year, the smallest annual rise since 2021, according to Experian.[2]

That total breaks down to $745 per month for new vehicles and $521 per month for used vehicles, based on the same Experian dataset.

These figures reflect a steady rise in monthly auto financing costs, driven by higher car prices, elevated interest rates, and longer loan terms. While stretching out payments can help affordability, it generally increases the total interest paid over the life of the loan.[4]

Average monthly auto loan payment over time

While the average monthly payment gives us a snapshot of current costs, looking at how those payments have changed over time tells a wider story. Car loan payments have risen sharply in recent years, with consistent year-on-year increases driven by higher vehicle prices, elevated interest rates, and longer loan terms.

* Data note: Average monthly payments are taken from Q3 each year.

Source: [2]

The average auto loan monthly payments continue to steadily rise year-over-year, increasing from $535 in 2020 to $662 in 2024. These increases could be down to the aforementioned rise in vehicle prices and higher average APRs.

Looking at Q3 across previous years highlights the continuous increase, but the latest data shows the smallest rise in the past five years. The highest came in 2022, rising from $555 to $588, a 5.9% increase.

Comparing 2021 to 2024 highlights a significant increase of 23.8% over four years, rising from $535 to $662.[2]

What is the average term of an auto loan?

The average length of an auto loan is 68.48 months for a new car, rising from 68.29% in the previous year and 67.41 months for a used car, just under six years (72 months) in both cases.

Long term length affects monthly payments

Longer loan terms help reduce the monthly amount borrowers need to pay, making it more affordable and easier to meet the payments. But often, though more affordable each month, longer auto loans may total more interest over time, and increase the risk of negative equity.

An example of this is if you were to pay for a new vehicle, based on 6.84% interest rate (the average for Q2 2024), with a $47,000 price and $9,400 down payment. The monthly payment on an 84-month loan is about two-thirds of the payment on a 48-month loan, however you end up paying nearly double the interest, costing you an additional $4,337.74.[3]

Auto Loan Cost Comparison by Term Length
Loan Term (Months)	Monthly Payment	Total Interest Payments	Total Loan Payments	Total Vehicle Cost
48	$897.59	$5,484.33	$43,084.33	$52,484.33
60	$741.69	$6,901.40	$44,501.40	$53,901.40
72	$638.16	$8,347.36	$45,947.36	$55,347.36
84	$564.55	$9,822.07	$47,422.07	$56,822.07

Source: [3]

Loan terms by credit score

Borrowers with lower credit scores typically receive longer terms, this could largely be down to reducing monthly costs, despite higher interest rates. Those with excellent credit typically qualify for shorter, lower-risk terms.

Here’s how average auto loan term lengths vary by credit tier:

Average Loan Terms by Credit Tier
Credit Tier	Credit Score Range	Avg. Term – New Car	Avg. Term – Used Car
Super prime	781–850	64.25 (5.35 years)	64.13 months (5.34 years)
Prime	661–780	71.87 (5.99 years)	67.99 months (5.67 years)
Nonprime	601–660	74.76 (6.23 years)	69.30 months (5.78 years)
Subprime	501–600	73.89 (6.16 years)	70.03 months (5.84 years)
Deep subprime	300–500	72.46 (6.04 years)	70.65 months (5.89 years)

Source: [3]

The data shows that borrowers in the subprime and deep subprime categories (scores below 600) are often taking out loans that last over six years.

Longest auto loan term available

One of the longest car loan terms available is generally 96 months, although it’s not offered by all lenders. These eight-year terms may allow for smaller monthly payments, but the interest rate is more likely to have a bigger impact due to the sheer length of the loan.[5]

How often are vehicles sent to repossession?

When a borrower falls behind on payments, a lender may initiate a repossession assignment, authorizing an agent to reclaim the vehicle. This doesn’t always result in the car being taken, but it’s the first formal step in the repossession process.

According to the CFPB, the share of loans sent to repossession increased following the pandemic. In December 2022, 0.75% of all active auto loans were assigned for repossession compared to 0.61% in December 2019, a 22.5% increase.[1]

Completed repossessions

A repossession is considered completed once the lender or their agent physically takes back the vehicle. However, data shows that many assignments never reach this stage. In 2022, nearly a third (27%) of repossessions were completed. This marked a clear decline from 38% in September 2019, before the pandemic.[1]

This drop may reflect factors such as borrowers opting to redeem their vehicles when possible.

Redemptions

After a repossession, borrowers don’t always lose their car permanently. Many are able to reclaim their vehicle by paying off the missed balance, fees, or entering a reinstatement agreement.

This process is known as redemption. In 2022, 30% of repossessions were redeemed, up from 25% in 2019 but down from 34% in December 2021.[1]

Deficiency balances

When a repossessed vehicle is sold by the lender, the proceeds often don’t cover the full amount that the borrower owes on the auto loan. The remaining amount is known as the deficiency balance and can be calculated by subtracting the sale price from the amount owed.

The latest data from CFPB shows that those who lost their vehicle were often still responsible for thousands in remaining loan balances. For loans originated in 2021 and repossessed in 2022, the median deficiency balance was approximately $4,106. Despite the repossessions being completed, the data shows that there’s still a significant amount left unpaid. This amount could be collected directly through collection efforts, debt buyers, or legal action. Deficiency balances can negatively impact the consumer’s credit score.[1]

Why do cars get repossessed?

Cars are typically repossessed for these reasons:

Missed or late payments – Some lenders may allow a grace period, but repossession can happen quickly if payments stop.
Lapsed insurance – Many auto loan agreements require full coverage insurance. If coverage lapses, repossession may follow.
Other loan violations – Using the vehicle in breach of contract terms may also lead to repossession, though this is less common.

Once the vehicle is repossessed, it’s usually sold. If the sale price doesn’t cover the outstanding balance, the borrower may still owe the deficiency balance.[6]

Time to complete a repossession

The time it takes to complete a vehicle repossession can vary based on the borrower’s credit profile. The median time from assignment to recovery was 15.9 days for super prime borrowers and 23.1 days for subprime borrowers. This suggests that consumers with lower credit scores may face longer repossession timelines, potentially due to greater difficulties in recovery logistics or lender contact.

Source: [1]

When voluntary repossessions are excluded, where the borrower turns in the vehicle, the time to complete a repossession increases slightly. On average, the recovery process took 2 to 4 days longer, with the median time rising by around one day.[1]

Voluntary repossession

Some consumers voluntarily surrender their vehicle to the lender after falling behind on payments or after being notified that the vehicle is subject to repossession.

Voluntary repossessions made up between 15% and 19% of all completed repossessions in 2018 and 2019. This figure spiked to 63% in early 2020, though this was largely due to a sharp drop in involuntary repossessions rather than a rise in voluntary actions.

By late 2020 and into early 2021, voluntary repossessions returned to pre-pandemic levels. From mid-2021 through the end of 2022, they remained lower, making up around 10% of completed repossessions.

The data also shows variation based on credit score. Borrowers with superprime credit scores saw voluntary repossession rates between 25% and 31% in 2018 and 2019, rising to 78% in April 2020. Between November 2021 and the end of 2022, their rates ranged from 14% to 18%.

For subprime borrowers, the share of voluntary repossessions ranged from 13% to 19% before the pandemic, and from 10%to 13% between November 2021 and late 2022.[1]

Sources

Consumer Financial Protection Bureau. Repossession in Auto Finance, https://files.consumerfinance.gov/f/documents/cfpb_report-repossession-in-auto-finance_2025-01.pdf. Accessed on July 15, 2025.
Experian. State of Auto Loan Debt Report, https://www.experian.com/blogs/ask-experian/research/auto-loan-debt-study. Accessed on July 15, 2025.
Experian. What Is the Average Length of a Car Loan?, https://www.experian.com/blogs/ask-experian/what-is-the-average-length-of-a-car-loan/. Accessed on July 15, 2025.
Experian. Average Car Payment in 2024: What You Need to Know, https://www.experian.com/blogs/ask-experian/average-car-payment/. Accessed on July 15, 2025.
Capital One. “Long-Term Loans: What to Know About a 96-Month Car Loan,” https://www.capitalone.com/cars/learn/getting-a-good-deal/longterm-loans-what-to-know-about-a-96month-car-loan/1594. Accessed on July 15, 2025.
Upsolve. Car Repossession 101: What Happens and How to Avoid It, https://upsolve.org/learn/car-repossession. Accessed on July 15, 2025.