P&A Providers & Administrators
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%.

 

Originally posted on Auto Dealer Today

More Industry

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →