The loans for used cars generally had higher interest rates than loans for new cars in the United States in 2025. In March of that year, loans with maturity of 48 months had an average interest rate of **** percent for used cars, and *** percent for new cars. The interest rates for 60-month new car loans reached its highest point of the past decade in the first half of 2024.

As of the third quarter of 2024, 72-month new car loans granted by commercial banks in the United States had an interest rate of **** percent. Meanwhile, auto loans at finance companies had an interest rate of **** percent, which is lower than the average rate in commercial banks. The finance rates for new cars have only decreased at finance companies.

Graph and download economic data for Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted (RIELPCFANNM) from Mar 2008 to Mar 2025 about finance companies, financing, companies, finance, financial, average, vehicles, new, loans, rate, and USA.

United States - Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted was 6.43% in March of 2025, according to the United States Federal Reserve. Historically, United States - Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted reached a record high of 6.98 in December of 2023 and a record low of 4.37 in December of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Average Finance Rate of New Car Loans at Finance Companies, Amount of Finance Weighted (DISCONTINUED) (RIELPCFANNQ) from Q1 2008 to Q3 2024 about finance companies, financing, companies, finance, financial, average, vehicles, new, loans, rate, and USA.

Graph and download economic data for Finance Rate on Consumer Installment Loans at Commercial Banks, New Autos 48 Month Loan (TERMCBAUTO48NS) from Feb 1972 to Feb 2025 about 4-years, installment, financing, consumer credit, vehicles, new, loans, consumer, interest rate, banks, interest, depository institutions, rate, and USA.

As of November 2023, the annual percentage rate (APR) for used sedans was higher than for any other type of car in most U.S. states. Among the states included in this selection, Texas had the highest financing costs for SUVs, trucks, and sedans. Meanwhile, electric cars had the highest APR in Pennsylvania. In some states like Texas, Illinois, and California electric cars had a lower APR than other types of vehicles, but in New York and Pennsylvania electric cars had the highest interest rates. The annual percentage rate is a measurement that provides information about the cost of borrowing, which, in contrast to the interest rates, also includes fees and other elements.

Graph and download economic data for Finance Rate on Consumer Installment Loans at Commercial Banks, New Autos 72 Month Loan (RIFLPBCIANM72NM) from Aug 2015 to Feb 2025 about 6-year, installment, finance, vehicles, new, loans, consumer, banks, depository institutions, rate, and USA.

As of the third quarter of 2023, the largest share of the loans for both new and used cars in the United States were taken for a term between 61 and 72 months. Around 29 percent of new car financing loans and 27 percent of used car financing loans in the U.S. were taken for a period from 73 to 84 months.

Graph and download economic data for Finance Rate on Consumer Installment Loans at Commercial Banks, New Autos 60 Month Loan (RIFLPBCIANM60NM) from Aug 2006 to Feb 2025 about installment, financing, consumer credit, vehicles, new, loans, consumer, interest rate, banks, interest, depository institutions, 5-year, rate, and USA.

The United States car loan market, valued at $175.86 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.56% from 2025 to 2033. This growth is fueled by several key factors. Firstly, a robust and expanding consumer base, coupled with increasing disposable incomes, drives demand for new and used vehicles. Secondly, readily available financing options from diverse providers, including banks, non-banking financial companies (NBFCs), and car manufacturers themselves, facilitate easier access to car loans. Furthermore, attractive financing schemes, such as low-interest rates and flexible repayment plans, further stimulate market expansion. The market is segmented by vehicle type (passenger and commercial), ownership (new and used), provider type (banks, NBFCs, manufacturers, others), and loan tenure (less than three years, 3-5 years, and more than 5 years). The competitive landscape involves major players like Ally Financial, Bank of America, Toyota Financial Services, and others, constantly vying for market share through innovative product offerings and competitive pricing. The market's growth trajectory, however, is influenced by certain constraints. Fluctuations in interest rates significantly impact borrowing costs, potentially affecting consumer demand. Economic downturns and associated uncertainties can also dampen consumer confidence, leading to reduced vehicle purchases and subsequently impacting loan demand. Regulatory changes pertaining to lending practices and consumer protection could further shape the market's future. Despite these challenges, the long-term outlook for the US car loan market remains positive, driven by the ongoing demand for personal and commercial vehicles and the continuous innovation within the financial services sector. The increasing adoption of digital lending platforms and technological advancements are also likely to propel market growth in the coming years. Understanding these dynamics is crucial for stakeholders to strategize effectively and capitalize on the market's potential. Recent developments include: August 2023: Toyota Financial Services (TFS) announced it is offering payment relief options to its customers affected by the recent wildfires in Hawaii. This broad outreach includes any Toyota Financial Services (TFS) or Lexus Financial Services (LFS) customers in the designated disaster areas., January 2023: AutoFi Inc., the leading provider of digital commerce technology that powers the sales and finance experiences across the automotive industry, extended its partnership with Santander Consumer USA Inc.. Key drivers for this market are: Government Incentives for Electric Vehicles. Potential restraints include: Government Incentives for Electric Vehicles. Notable trends are: Share of New Vehicle Financing is High in United States.

The global car loan market, valued at $1.10 trillion in 2025, is projected to experience steady growth, driven by increasing vehicle ownership, particularly in developing economies with burgeoning middle classes. The market's Compound Annual Growth Rate (CAGR) of 3.67% from 2025 to 2033 indicates a consistent upward trajectory. Several factors contribute to this growth. The rising popularity of purchasing vehicles through financing options, coupled with attractive interest rates and flexible repayment plans offered by banks, non-banking financial institutions (NBFCs), and original equipment manufacturers (OEMs), fuels market expansion. Technological advancements, including the rise of fintech companies offering innovative lending solutions, further enhance accessibility and convenience for borrowers. The market is segmented by vehicle type (passenger and commercial), ownership (new and used), provider type (banks, NBFCs, OEMs, and fintechs), and loan tenure (less than three years, 3-5 years, and more than 5 years). The North American market, particularly the United States, is expected to retain a significant share, driven by strong consumer demand and established financial infrastructure. However, growth in Asia-Pacific and other emerging markets is anticipated to be substantial, owing to rising disposable incomes and increasing vehicle sales. Used car loan financing will likely witness a robust growth trajectory due to affordability and increasing demand for pre-owned vehicles. The competitive landscape is characterized by major players such as Toyota Financial Services, Ford Credit, and Ally Financial, alongside other significant banks and financial institutions. These companies continuously strive to improve their offerings, including developing advanced risk assessment models and creating more user-friendly digital platforms to maintain a competitive edge. Regulatory changes concerning lending practices and interest rates will undoubtedly impact market dynamics in the coming years. Economic fluctuations, particularly interest rate hikes, could present challenges to market growth. Nevertheless, the overall outlook for the car loan market remains positive, with sustained growth predicted throughout the forecast period, fueled by increasing vehicle sales and evolving consumer financing preferences. Recent developments include: May 2023: A subsidiary of Russian auto dealer Avilon, Art-Finance LLC, completed the acquisition of German automaker Volkswagen's Russian assets., April 2022: Faurecia, a FORVIA Group, and Mercedes-Benz Group AG announced a worldwide long-term partnership to integrate its apps platform, developed in partnership with Aptoide.. Key drivers for this market are: Rise in Demand for Luxury Cars Fueling the Market Growth. Potential restraints include: Rise in Demand for Luxury Cars Fueling the Market Growth. Notable trends are: Increasing Sales of Passenger Cars in Asia.

The size of the United States Car Loan Market was valued at USD 175.86 Million in 2023 and is projected to reach USD 240.28 Million by 2032, with an expected CAGR of 4.56% during the forecast period. The car loan market plays a vital role in facilitating vehicle ownership, providing individuals and businesses with the necessary financial means to purchase automobiles. This market encompasses a range of financing options, including traditional bank loans, credit unions, online lenders, and dealership financing, each offering varying terms, interest rates, and repayment structures. Car loans typically involve a borrower receiving a lump sum to buy a vehicle, which is then repaid in monthly installments over a predetermined period, usually ranging from three to seven years. The interest rates on car loans can vary significantly based on factors such as the borrower's creditworthiness, the type of vehicle, and market conditions. In recent years, the car loan market has experienced notable changes driven by technological advancements and shifting consumer preferences. The rise of digital platforms has made the loan application process more convenient, allowing borrowers to compare rates, apply for financing, and receive approval quickly and easily. Additionally, the growing popularity of electric and hybrid vehicles has prompted lenders to develop specialized financing options tailored to eco-friendly vehicles, further diversifying the market. Recent developments include: August 2023: Toyota Financial Services (TFS) announced it is offering payment relief options to its customers affected by the recent wildfires in Hawaii. This broad outreach includes any Toyota Financial Services (TFS) or Lexus Financial Services (LFS) customers in the designated disaster areas., January 2023: AutoFi Inc., the leading provider of digital commerce technology that powers the sales and finance experiences across the automotive industry, extended its partnership with Santander Consumer USA Inc.. Key drivers for this market are: Government Incentives for Electric Vehicles. Potential restraints include: Higher Interest Rates for Car Loans are the Restraints for the Market. Notable trends are: Share of New Vehicle Financing is High in United States.

Graph and download economic data for New Car Average Finance Rate at Auto Finance Companies (DISCONTINUED) (RIFLPCFANNM) from Jun 1971 to Jan 2011 about finance companies, companies, finance, financial, vehicles, new, rate, and USA.

Auto Finance Market Outlook

The global auto finance market size was valued at approximately USD 250 billion in 2023 and is projected to reach around USD 400 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.2% during the forecast period. This growth can be attributed to several key factors, including the increasing affordability of vehicles due to flexible financing options, the expansion of automotive sales in emerging markets, and technological advancements in financing services. As more consumers opt for financing solutions to purchase vehicles, the demand for auto finance services continues to rise, offering significant opportunities for providers to expand and innovate.

One of the primary growth factors in the auto finance market is the rising demand for vehicles worldwide, particularly in developing regions where economic growth is driving higher disposable incomes. As consumers increasingly seek personal mobility solutions, the availability of diverse financing options—such as loans, leases, and more flexible payment terms—makes vehicle ownership more accessible. This has been further supported by the proliferation of digital platforms that simplify the application and approval processes, thus enhancing customer experience and encouraging more consumers to opt for financial services when purchasing vehicles. Additionally, the automotive industry itself is witnessing a shift towards electric and hybrid vehicles, necessitating the development of specialized financing solutions tailored to these emerging technologies.

Another significant factor contributing to the growth of the auto finance market is the increasing penetration of digital technologies and fintech innovations. The integration of advanced technologies such as artificial intelligence, machine learning, and big data analytics in the auto finance sector is transforming how services are delivered. These technologies enable providers to offer personalized financing solutions, streamline operations, and improve risk assessment processes. Furthermore, the rise of mobile banking and online platforms has facilitated easier access to finance products, allowing consumers to compare options and make informed decisions swiftly. This digital transformation is not only enhancing operational efficiency for providers but also expanding their reach to a broader customer base.

The auto finance market is also experiencing growth due to the supportive regulatory environment in many countries. Governments are increasingly acknowledging the importance of the automotive industry as a driver of economic growth and are implementing policies to encourage vehicle ownership through financing. This includes offering tax incentives for electric vehicles, reducing interest rates, and supporting financing institutions with favorable regulations. Moreover, partnerships between financial institutions and automotive manufacturers are becoming more prevalent, leading to the development of integrated finance solutions that are convenient and attractive to consumers. These collaborative efforts are expected to further propel the market during the forecast period.

Service Type Analysis

The auto finance market is segmented by service type into loans, leases, and others. Loans remain the most popular financing option among consumers due to their straightforward nature and long-standing presence in the market. Car loans enable consumers to own vehicles right away while paying back the loan over a specified period, usually with added interest. This traditional form of financing has proven to be resilient, adapting over time with various interest rate structures and repayment terms designed to appeal to a broad range of consumers. Additionally, the competitive landscape in the loan market has led to lower interest rates and more flexible terms, making loans an attractive option for many vehicle purchasers.

Leasing, on the other hand, is gaining traction, particularly among consumers who prefer to drive new models without the long-term commitment of ownership. Leasing offers several advantages, including lower monthly payments compared to loans, the ability to drive a new vehicle every few years, and reduced maintenance costs. These benefits make leasing an appealing choice for both individuals and businesses that want to keep up with the latest automotive technologies and trends. Furthermore, leasing has become increasingly popular for electric and hybrid vehicles, as it allows consumers to experience these new technologies without the apprehension of long-term depreciation or outdated battery performance issues.

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Singapore Hire Purchase Loan Rate of New Cars for 3 Years: 10 Finance Co Avg data was reported at 4.870 % pa in Sep 2018. This records an increase from the previous number of 4.830 % pa for Aug 2018. Singapore Hire Purchase Loan Rate of New Cars for 3 Years: 10 Finance Co Avg data is updated monthly, averaging 5.650 % pa from Jan 1983 (Median) to Sep 2018, with 429 observations. The data reached an all-time high of 12.670 % pa in Jan 1983 and a record low of 3.240 % pa in Apr 2012. Singapore Hire Purchase Loan Rate of New Cars for 3 Years: 10 Finance Co Avg data remains active status in CEIC and is reported by Monetary Authority of Singapore. The data is categorized under Global Database’s Singapore – Table SG.M001: Lending Rate.

Used Car Prices YoY in the United States decreased to 4 percent in May from 4.90 percent in April of 2025. This dataset includes a chart with historical data for the United States Used Car Prices YoY.

South Korea Car Loan Market size was valued at USD 15.00 Billion in 2024 and is projected to reach USD 30.00 Billion by 2032, growing at a CAGR of 9.05% during the forecast period 2026-2032.

South Korea Car Loan Market Drivers

1. Growing Demand for Automobiles and Vehicle Ownership Higher rates of car ownership are being driven by urbanization and rising disposable income. The demand for loans is being driven by growing interest in eco-friendly automobiles and electric vehicles (EVs). Trends in auto financing are supported by the growing middle class.
2. Affordable Interest Rates and Advantageous Financing Choices Competitive interest rates are available on auto loans from South Korean banks and financial institutions. Longer loan terms, zero-down payment plans, and flexible repayment choices draw in more borrowers. The sector is further stimulated by government incentives for green car financing and EV loans.
3. Auto Financing's Digital Transformation Digital lending platforms and fintech businesses streamline loan applications and approvals. Blockchain technologies and AI-powered credit scoring increase efficiency and transparency. Online resources for comparing auto loans assist buyers in locating the finest finance offers.

United States Terms of Credit: Fin Co: New Car Loans: Interest Rate data was reported at 5.240 % pa in Mar 2018. This records a decrease from the previous number of 5.290 % pa for Dec 2017. United States Terms of Credit: Fin Co: New Car Loans: Interest Rate data is updated quarterly, averaging 4.970 % pa from Mar 2008 (Median) to Mar 2018, with 41 observations. The data reached an all-time high of 6.640 % pa in Mar 2008 and a record low of 4.400 % pa in Jun 2011. United States Terms of Credit: Fin Co: New Car Loans: Interest Rate data remains active status in CEIC and is reported by Federal Reserve Board. The data is categorized under Global Database’s USA – Table US.KA011: Consumer Credit Outstanding and Terms of Credit.

Car Production in the United States increased to 11.19 Million Units in May from 10.44 Million Units in April of 2025. This dataset provides - United States Car Production- actual values, historical data, forecast, chart, statistics, economic calendar and news.