Auto Loan Payments Hit Record Highs in Q1 2026: UBS Analyst Weighs In - News and Statistics

Jul 7, 2026

In a recent appearance on Varney & Co., UBS managing director and senior portfolio manager Jason Katz shared his market outlook for the second half of the year. According to a new report from LendingTree, which analyzed Experian data for the first quarter of 2026, the average monthly payment for a new vehicle climbed 2.9% year-over-year to a record $770. Lease payments on new vehicles rose even faster, increasing 3.2% over the past year to an average of $619 in the first quarter. Used car payments saw a more modest increase of 1.5%, reaching an average monthly payment of $531.

Among borrowers with different credit score tiers, nonprime borrowers—those with scores between 601 and 660—faced the highest average monthly payments on new vehicles at $811. Subprime borrowers, with scores from 501 to 600, paid an average of $792. Super-prime borrowers, whose scores range from 781 to 850, had the lowest average monthly payment for a new vehicle at $753.

The average auto loan amount for new vehicles in the first quarter stood at $43,925, up from $43,582 in the prior quarter. For used vehicles, the average loan amount was $27,070, a decline from $27,528 in the previous quarter. Borrowers in the prime credit tier—with scores between 661 and 780—took out the largest loans for new vehicles, averaging $46,244. Among used-vehicle buyers, super-prime borrowers had the largest average loan amount at $29,599.

Consumer loan balances have grown partly due to higher vehicle prices. The Bureau of Labor Statistics reported that new vehicle prices in May were up 0.2% year-over-year, while prices for used cars and trucks fell 2% from a year earlier. Nationwide, outstanding auto loan debt totaled $1.685 trillion in the first quarter of 2026, a 57.3% increase from $1.071 trillion in the first quarter of 2016, according to the Federal Reserve Bank of New York. Auto loans accounted for 9% of U.S. consumer debt, ranking as the second-largest category, narrowly exceeding the $1.658 trillion in student loan debt. Mortgages remained the largest share at 70.2%.

Auto loan originations in the first quarter of 2026 reached $182.1 billion, up slightly from $180.8 billion in the fourth quarter of 2025 but below the $187.9 billion recorded in the second quarter of last year. The highest recorded total of auto loan originations was $201.9 billion in the second quarter of 2021.

1. INTRODUCTION

Making Data-Driven Decisions to Grow Your Business

REPORT DESCRIPTION
RESEARCH METHODOLOGY AND THE AI PLATFORM
DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
GLOSSARY AND SPECIFIC TERMS

2. EXECUTIVE SUMMARY

A Quick Overview of Market Performance

KEY FINDINGS
MARKET TRENDS This Chapter is Available Only for the Professional EditionPRO

3. MARKET OVERVIEW

Understanding the Current State of The Market and its Prospects

MARKET SIZE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
CONSUMPTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
MARKET FORECAST TO 2035

4. MOST PROMISING PRODUCTS FOR DIVERSIFICATION

Finding New Products to Diversify Your Business

TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
BEST-SELLING PRODUCTS
MOST CONSUMED PRODUCTS
MOST TRADED PRODUCTS
MOST PROFITABLE PRODUCTS FOR EXPORT

5. MOST PROMISING SUPPLYING COUNTRIES

Choosing the Best Countries to Establish Your Sustainable Supply Chain

TOP COUNTRIES TO SOURCE YOUR PRODUCT
TOP PRODUCING COUNTRIES
TOP EXPORTING COUNTRIES
LOW-COST EXPORTING COUNTRIES

6. MOST PROMISING OVERSEAS MARKETS

Choosing the Best Countries to Boost Your Export

TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
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UNSATURATED MARKETS
TOP IMPORTING MARKETS
MOST PROFITABLE MARKETS

7. PRODUCTION

The Latest Trends and Insights into The Industry

PRODUCTION VOLUME AND VALUE: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
PRODUCTION BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

8. IMPORTS

The Largest Import Supplying Countries

IMPORTS: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
IMPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

9. EXPORTS

The Largest Destinations for Exports

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EXPORTS BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)
EXPORT PRICES BY COUNTRY: HISTORICAL DATA (2012–2025) AND FORECAST (2026–2035)

10. PROFILES OF MAJOR PRODUCERS

The Largest Producers on The Market and Their Profiles

11. COUNTRY PROFILES

The Largest Markets And Their Profiles

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