agent Entrepreneur logo
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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...