Average Monthly Auto Loan Payments – With prices rising in the economy, both new and used cars are becoming expensive. How much will you likely pay your average monthly auto loan payment?

One of the biggest expenses after buying a vehicle is keeping up with your monthly car loan payments! Although the loan amount varies based on several factors ( such as credit score, APR, loan term, etc. ), the most important is the price of the vehicle.

In recent quarters, the prices of new and used vehicles have skyrocketed. What effect has that had on average auto loan payments in the US? Let’s take a quick look.

Average Monthly Car Payments: Statistics at a Glance

According to vehicle valuation and pricing service Edmunds, here are the most important stats you need to know so far:

  • Average monthly auto loan payment for NEW VEHICLES increased from €639 (Q4 2021) to €648 (Q1 2022)
  • The average monthly auto loan payment for USED VEHICLES also increased from €524 (Q4 2021) to €538 (Q1 2022)
  • The average total loan amount to buy a NEW VEHICLE increased from €35,040 (Q4 2021) to €39,340 (Q1 2022)
  • The average total loan amount to buy a USED VEHICLE also increased from €23,958 (Q4 2021) to €39,830 (Q1 2022)

What is included in your monthly car payments?

Monthly car payments are calculated based on:

  • The amount of the loan borrowed: the final amount after deducting any down payment, refund, and trade-in credits.
  • The interest rate of the loan: the APR offered after analyzing the credit profile of the borrowers
  • The total term of the loan: The period during which you want to continue paying the loan
  • Vehicle age: new vehicles are more expensive than used ones

Average Monthly Car Payments by Credit Score

credit score new cars Used cars
781-850 €582 €443
661-780 €620 €462
601-660 €647 €487
501-659 €638 €481
300-500 $ 615 €474

Average auto loan amounts by credit score

credit score New car loan amounts used Used Car Loan Amounts
781-850 €33,975 €26,010
661-780 €38,950 €27,478
601-660 €39,370 €26,145
501-659 €35,150 €21,830
300-500 €30,010 €18,350

Average auto loan rates by credit score

credit score New car loan rates Used Car Loan Rates
781-850 2.58% 3.68%
661-780 3.64% 5.35%
601-660 6.32% 9.77%
501-659 9.92% 15.91%
300-500 12.99% 19.85%

Average Auto Loan Terms

credit score New car loan term (months) Used car loan terms (months)
781-850 63.94 64.25
661-780 70.97 67.75
601-660 74.13 67.77
501-659 73.5 64.99
300-500 72.19 65.14

How to calculate your once-a-month car loan payments?

Step 1 – Find the total loan amount you want to borrow by following these steps

  • Set a purchase price for your car
  • Calculate sales tax and add it to the purchase price
  • Deduct the trade-in value of your old car (if applicable)
  • Add dealer fees, documents, and other charges
  • Subtract and rebates or discounts
  • Subtract the down payment you want to pay

Step 2: Apply the following formula to find the monthly payment


  • P = the principal amount
  • I = the interest rate per month, which is equal to the annual interest rate divided by 12
  • N = the total number of months
  • A = monthly installment to pay

You can also use a simple online auto loan rate to determine how much you have to pay.

How can I lower my monthly car payment?

  • Build a good credit score and consistent payment history before you apply
  • Always negotiate with the lender for a good APR
  • If you’re already paying a high monthly amount, consider refinancing an auto loan with a lower APR.
  • Consider refinancing your car longer-former term so you can pay less each month
  • Don’t have enough credit to lower your payment? Try to refinance your loan with a co-signer
  • Consider buying a used car (which costs less and will have lower monthly payments)

Frequently asked questions (FAQ)

What is the average monthly payment on a car loan?

In the first quarter of 2022, the average monthly car loan payment was €648 for new vehicles and €538 for used vehicles.

Is $500 too much for a monthly car payment?

Paying €500 for a monthly car loan in 201initely has been too much. But in 2022, when the average monthly payment is €648, consider yourself lucky if you only have €500 to pay!

How much is too much for a monthly car loan payment?

Auto loan payments are calculated using several factors, including your credit score, qualification, length of the loan term, and more. However, given current average rates and payments, anything over €600 may be considered too much to pay on your car loan.