American households now hold $1.66 trillion in auto loan debt, according to data from the Federal Reserve Bank of New York. The figure, reported for the third quarter of 2025, exceeds total outstanding student loan debt and stands as the largest non-housing debt category for consumers.
The total auto loan debt has increased by 58% over the past ten years. In November 2025, the average price for a new car reached $49,814, a record high according to Kelley Blue Book.
Analysis from NPR, using data from Kelley Blue Book and the Bureau of Labor Statistics, shows that since 2020, the average new car price has risen 30%, while average repair and maintenance costs have increased 47%. These increases have outpaced general inflation.
Experian reported that in the third quarter of 2025, the typical new car purchase involved a loan of $42,332. The average monthly payment was $748, with loan terms stretching to an average of 69 months.
Data from Edmunds indicates that 28.1% of vehicle trade-ins between July and September 2025 had negative equity, meaning the loan amount exceeded the car's value. This is the highest rate recorded in four years.
Kelley Blue Book stated that in early December 2025, the average listing price for a used car was $25,730.
Some employers in cities like New York and Washington, D.C., are required to offer commuter benefits, which can include vehicle subsidies or carpooling credits, according to local government sources. Several states also provide electric vehicle tax credits.