US Trends

what is the average car payment in 2023

The average monthly car payment in 2023 was roughly in the mid‑$700s for new cars and mid‑$500s for used cars in the U.S., with many borrowers paying even more depending on credit and loan terms.

What Is the Average Car Payment in 2023?

In 2023, car payments climbed to record territory, driven by high interest rates, elevated vehicle prices, and longer loan terms.

Key 2023 averages (U.S.)

  • New car average monthly payment in Q3 2023: about $726–$736.
  • Used car average monthly payment in 2023: about $567.
  • Share of new car loans with $1,000+ monthly payments in Q3 2023: 17.5%.
  • Average new car transaction price in 2023: about $48,451.
  • Average used car price in 2023: about $28,381.

So if you financed a typical new car in 2023, a payment around $700–$750 per month was very common, with used car borrowers mostly in the $500–$600 range.

Mini Sections

1. Why 2023 payments got so high

Several factors pushed the average car payment in 2023 to new highs:

  • Higher interest rates on auto loans after aggressive rate hikes.
  • Vehicle prices that stayed elevated after the pandemic supply crunch, with new cars about 25% pricier than in 2019.
  • Longer loan terms around 68–69 months, which keep payments “affordable” while increasing total interest.
  • More people rolling negative equity from old loans into new ones, inflating balances.

An example: financing around $40,000 for about 68 months at roughly 7–8% APR naturally lands you near that $730+ payment range.

2. New vs. used vs. lease in 2023

While your question focuses on what is the average car payment in 2023 , it helps to separate types of financing.

  • New cars
    • Monthly payment: roughly $726–$736 in Q3 2023.
* Amount financed: about **$40,000–$40,500**.

* Average APR: around **7.0–7.4%**.
  • Used cars
    • Monthly payment: about $567.
* Amount financed: about **$28,000+** in 2023.

* Interest rates typically **higher than new** , often well into double digits for many borrowers.
  • Leases
    • 2023 lease payments were generally lower than loan payments, but lease averages are often reported alongside later years, and by 2024–2025 they sat in the high‑$500s.

3. Data snapshot (2023 context)

Here is a simple overview of typical 2023 numbers drawn from major auto‑finance datasets.

[8][1] [1] [1] [1] [1] [1] [1] [1] [1]
Category New Cars (2023) Used Cars (2023)
Average monthly payment $726–$736 ≈$567
Amount financed ≈$40,149 ≈$28,381
Average APR ≈7.0–7.4% Often 10%+ for many borrowers
Average loan term ≈68–69 months Mid‑60s months
Share with $1,000+ payment (new) 17.5% of new loans Not commonly reported

4. Forum talk & “latest news” feel

In car forums and comment sections, 2023’s average car payment in 2023 became a frequent rant topic because the numbers felt disconnected from stagnant wages. Users often posted things like:

“I can’t believe people are cool with a $900 truck payment. That used to be a mortgage.”

Common viewpoints you’ll see in those discussions:

  1. “Prices are insane, just buy used or keep your old car”
    • Many posters argue that with a $700–$750 average, the real “smart” move is driving paid‑off older cars and avoiding new‑car depreciation.
  1. “High payments are the new normal”
    • Others point out that as new car prices approach $50,000 and rates stay elevated, a $700–$800 payment is just what the math produces.
  1. “People are stretching themselves too thin”
    • There is recurring concern about borrowers taking 72–84‑month loans to make big prices “fit” the monthly budget, then ending up underwater.

5. How to think about your own payment

If you’re trying to compare your situation with the average car payment in 2023 , consider these quick checks.

  1. Compare to your income
    • Many financial educators suggest keeping your car payment under 10–15% of take‑home pay ; if you’re over that, the average doesn’t really matter—you may be stretched.
  2. Look at total cost, not just monthly
    • A slightly higher payment on a shorter term (e.g., 48–60 months) can be healthier than a “comfortable” payment on 84 months.
  3. Run the numbers before you sign
    • Use an auto loan calculator to plug in price, rate, and term so you see total interest and payoff date.

SEO Meta & Wrap‑Up

Meta description:
In 2023, the average car payment in the U.S. was roughly $726–$736 for new cars and about $567 for used cars, driven by high prices and interest rates. TL;DR:

  • New car average payment in 2023: around $730/month.
  • Used car average payment: around $567/month.
  • Many borrowers—about 1 in 6 new‑car buyers—paid $1,000+ per month.

Information gathered from public forums or data available on the internet and portrayed here.