Average Car Payment in 2026: $765 New, $542 Used

The average new-car payment in the US is $765 a month, and the average used-car payment is $542, according to Experian’s Q2 2026 auto finance data. The typical new loan is $43,610 at a 6.35% APR over 69.5 months. Cox Automotive’s September 21 market summary put the typical payment at $770 in August, up 2.6% from a year earlier, and Kelley Blue Book reported an average new-vehicle transaction price of $50,089, the first month back above $50,000 in its September 10 report. Payments are creeping up even though the sticker price is only rising about 2% a year.

What the Latest Numbers Say

Here are the figures from the primary sources we opened. Each comes from a different data set, so they will not match exactly.

Two details matter for the next few months. First, incentives are shrinking: Cox says they were down 7.3% year over year, so the discount between MSRP and what buyers pay is narrowing. Second, Cox noted that new-vehicle loan rates rose about 20 basis points over the previous two months. Higher prices, thinner incentives and slightly higher rates all push in the same direction.

Segment prices from the same Kelley Blue Book report show where the money goes:

The cheapest segments rose the fastest in percentage terms. Kelley Blue Book credited a richer mix of midsize SUV sales plus price increases on subcompact SUVs and compact cars.

Your Credit Score Moves the Payment

Experian’s tier data shows the interest rate gap clearly. These are Q2 2026 new-car averages:

The payment column looks flat because lower-score borrowers tend to take smaller loans or longer terms, so the monthly figure hides the real cost. To see it, take Experian’s average loan of $43,610 over 69.5 months. Our arithmetic, using the standard loan formula:

That is roughly $7,700 more interest for the near-prime borrower than for the super-prime borrower on the same car (our arithmetic). The payment difference looks small at $111 a month, but it compounds across nearly six years.

Term Length: Lower Payment, Higher Total

Stretching a loan is the most common way to hit a monthly target. Holding the same $43,610 at 6.35% (our assumption, not a lender quote), here is what the term does:

Going from 60 to 84 months cuts the payment by about $206 but adds roughly $3,100 in interest (our arithmetic). It also keeps you owing money longer, which raises the risk of owing more than the car is worth. Check what holds value in our best resale value cars guide.

The Payment Is Not the Cost of the Car

A $765 payment is $9,180 a year (our arithmetic), and that is before insurance, fuel, maintenance and depreciation. The BLS August 2026 Consumer Price Index release, published September 11, shows several of those costs moving differently:

• Motor vehicle repair rose 5.2% over 12 months.
• Gasoline rose 27.4% over 12 months.
• New vehicles rose 0.6% over 12 months, a smaller gain than the transaction-price data suggests because the CPI adjusts for quality changes.
• Used cars and trucks fell 2.3% over 12 months.

Cox’s Manheim index, a wholesale used-car price gauge, was 206.2 in early September, down 1% from the end of August and down 0.4% from a year earlier. Used prices are flat to slightly lower while new prices climb, which is why used-car payments are far lower than new-car payments, though used-car interest rates are much higher.

To test your own price, rate and term, try the car payment calculator. For the full picture of what a year of ownership costs, use our car cost of ownership guide and the car cost of ownership calculator. If fuel is the budget stress, the hybrid break-even guide and the EV vs gas cost comparison show where a different powertrain pays off.

How to Spend Less

1. Shop the rate before the car. Get a quote from a credit union or your bank, then ask the dealer to beat it. On the average loan, each full percentage point of APR is worth roughly $20 a month (our arithmetic: $752 at 6.35% against $731 at 5.35%).
2. Add cash down. On Experian’s average loan, $5,000 down lowers the payment from about $752 to about $665 at the same rate and term (our arithmetic).
3. Pick the shortest term you can carry. The 60-month row above costs about $3,100 less in interest than the 84-month row.
4. Price used, but compare rates. Experian’s used-car average APR is 11.19%, so a $27,852 loan can cost more in interest per dollar than a new loan. A super-prime used borrower averaged 6.29%, which on that loan is about $489 a month against about $556 at the 11.19% average (our arithmetic).
5. Watch incentives. With incentives at 6.5% of price, check manufacturer cash and low-APR offers, and compare them to a cash rebate paired with outside financing.
6. Budget the whole car. Include insurance, which varies a lot by state and driver; see our EV insurance cost guide for how vehicle type changes premiums.

FAQ

What is the average car payment in 2026?

Experian’s Q2 2026 data puts it at $765 a month for a new car and $542 for a used car. Cox Automotive reported a typical payment of $770 for August 2026, up 2.6% from a year earlier.

What is the average new car price right now?

Kelley Blue Book reported an average transaction price of $50,089 for August 2026, up 1.9% from August 2025. The average MSRP was $51,852.

What is the average auto loan interest rate?

Experian’s Q2 2026 averages are 6.35% for new cars and 11.19% for used cars. Rates range from 4.41% for super-prime new-car borrowers to 16.11% for deep subprime.

How long is the average car loan?

Experian reports 69.5 months for new cars and 67.9 months for used cars in Q2 2026. Longer terms lower the payment but raise total interest.

Are car prices going up or down?

New-vehicle transaction prices are up about 2% year over year per Kelley Blue Book, while the BLS CPI index for used cars and trucks fell 2.3% over 12 months through August. Incentives are shrinking, so new-car deals are less generous than a year ago.