![Fernando de Querol Cumbrera](https://cdn.statcdn.com/static/../CMS/contactperson/ERI3154_1711543009.png)
Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
Get in touch with us nowCar loan interest rates in the United States increased slightly in May and June 2024. However, the period of rapidly rising interest rates seems to have come to an end. In the U.S., the interest rate on five-year car loans decreased between 2019 and December 2021, when it reached the lowest value of 3.85 percent. However, the interest rate soared in the years after that, reaching 7.9 percent in February 2024. The average size of new car loans and leasing in the U.S. has risen in the past couple of years, increasing further the burden on borrowers.
Car financing exists because not everyone who wants or needs a car can purchase it outright. A financial institution will then lend the money to the customer for purchasing the car, which must then be repaid with interest. Most new vehicles in the United States in 2023 were purchased using car loans. It is not as common to use car loans for purchasing used vehicles as for new ones, although over a third of used vehicles were purchased using loans.
The car financing business is huge in the United States, due to the high sales of both new and used vehicles in the country. A lot of the United States is very car-centric, which means that, outside large cities, it can often be difficult to do their daily commutes through other transportation methods. In fact, only a small percentage of U.S. workers used public transport to go to work. That is one of the factors that has helped establish the importance of the automotive sector in North America. Nevertheless, there are still countries in Asia-Pacific, Africa, the Middle East, and Europe with higher car-ownership rates than U.S.
* For commercial use only
Basic Account
Starter Account
Professional Account
1 All prices do not include sales tax. The account requires an annual contract and will renew after one year to the regular list price.
Car loans
Car leases
Interest rates
Payments & maturity
Risk and delinquency
Further related statistics
* For commercial use only
Basic Account
Starter Account
Professional Account
1 All prices do not include sales tax. The account requires an annual contract and will renew after one year to the regular list price.