Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Auto Consumers Stretched to the Limit?

Third-quarter stats find budget acrobatics, more accounts in arrears

December 5, 2025
Auto Consumers Stretched to the Limit?

Thirty-day delinquencies ticked up slightly in the third quarter to about 3%, and 60-day delinquencies rose to 1%.

Credit:

Pexels/Mikhail Nilov

2 min to read


U.S. auto consumers are stretching their budgets to new extremes, and delinquent loans are on the rise, based on third-quarter data.

Though auto interest rates have fallen slightly, average loan amounts and monthly payments have still headed in the opposite direction, and more consumers are taking out extra-long loan terms to accommodate the inflation, Experian research found.

Ad Loading...

The patterns held for both new and used vehicles as many consumers who might have bought new in the past have turned to the used market for greater affordability.

The average interest rates for new and used autos barely ticked down in the quarter. The new-vehicle average fell by just about a tenth of a percentage point to 6.6%, while the average for used autos fell about half a percentage point to 11.4%, Experian reported.

Average loan amounts, meanwhile, shot up by 3% for both new and used autos, landing at $42,332 for new vehicles and $27,128 for used. 

In response to the change, vehicle loan terms on the extreme end of the scale also rose, Experian found. 

New-auto loans on 73- to 84-month terms rose three percentage points to about 30%, while those surpassing 85 months rose about half a percentage point to 2%.

Ad Loading...

On the used side, 73- to 84-month terms climbed a percentage point to 27%, and 85-month-plus loans ticked up slightly to 1%.

“Consumers tend to shop for vehicles based on monthly payment,” said Experian Head of Automotive Financial Insights Melinda Zabritski. “Although we’re beginning to see interest rates slowly decline, affordability remains top of mind for many shoppers.”

Some consumers can’t keep up, despite loan-stretching tactics. Thirty-day delinquencies ticked up slightly in the quarter to about 3%, and 60-day delinquencies rose to 1%, Experian said.

DIG DEEPER: AI-Guided Car-Shopping Insight

New-vehicle financing increased in the quarter by a percentage point to 43%, while used-auto financing fell at the same rate to 57%.

 

More Industry

F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Ad Loading...
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →
Salesby Hannah MitchellFebruary 19, 2026

Auto Sales Still Sluggish

February forecast has new-vehicle deliveries still off from last year at this time amid high prices and vanished EV incentives. But J.D. Power sees business picking up from here as automakers target growth.

Read More →
Industryby Hannah MitchellFebruary 18, 2026

EVs Bring Most Satisfaction to Date

Study finds that adopters are true believers and that their satisfaction with the vehicles is growing, including for public charger experience, despite pullback of federal incentives.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 17, 2026

Auto Manufacturing Drives Economic Growth

The sector generates over $64 billion in annual economic impact in South Carolina, making it the largest and fastest-growing manufacturing subsector in the state.

Read More →