The average new-car loan made by finance companies in the second quarter of 2026 was $41,705, repaid over 66.75 months at an average interest rate of 6.31%, according to the Federal Reserve. A year earlier, in the second quarter of 2025, the average was $39,867 over 66.18 months at 6.61%.
Finance companies include the lending arms of carmakers, often called captive finance companies, and independent auto lenders. The Fed says its figures cover most of both kinds. Because the series covers only finance companies, it is not an average for all new-car loans, but it is a long-running, consistent look at the size, length and price of a new-car loan.
What changed
The amount financed was 4.6% higher than a year earlier and the term was slightly longer, while the average rate was 0.30 percentage points lower. The amount financed has been near $41,700 for the past three quarters. In 2008, the first year of this series, the average was $24,567. The average rate in this series was highest in Q4 2023 (6.98%) and lowest in Q4 2021 (4.37%).
For comparison, commercial banks reported an average rate of 7.54% on 60-month new-car loans and 7.17% on 72-month loans in August 2026. One reason finance company averages can be lower is that carmakers’ finance arms offer promotional rates on some models to help sell cars, so the average includes deals that not every buyer qualifies for.
What that loan costs
At the Q2 2026 averages, a loan of $41,705 at 6.31% over 67 months would have a payment of about $740 a month and total interest of about $7,885. This is our illustration using the averages; actual loans vary widely by credit score, down payment, term and vehicle.
Quarter by quarter, past three years
| Quarter | Average amount financed | Average term (months) | Average interest rate |
|---|---|---|---|
| Q2 2026 | $41,705 | 66.8 | 6.31% |
| Q1 2026 | $41,727 | 66.5 | 6.16% |
| Q4 2025 | $41,742 | 66.1 | 6.13% |
| Q3 2025 | $40,803 | 66.3 | 6.27% |
| Q2 2025 | $39,867 | 66.2 | 6.61% |
| Q1 2025 | $39,918 | 66.1 | 6.43% |
| Q4 2024 | $40,114 | 65.5 | 6.04% |
| Q3 2024 | $39,277 | 65.8 | 6.19% |
| Q2 2024 | $39,350 | 66.4 | 6.35% |
| Q1 2024 | $38,804 | 66.0 | 6.23% |
| Q4 2023 | $38,519 | 65.4 | 6.98% |
| Q3 2023 | $38,588 | 65.4 | 6.73% |
Yearly averages since 2008
| Year | Average amount financed | Average term (months) | Average interest rate | Quarters |
|---|---|---|---|---|
| 2026 | $41,716 | 66.6 | 6.23% | 2 |
| 2025 | $40,582 | 66.2 | 6.36% | 4 |
| 2024 | $39,386 | 65.9 | 6.20% | 4 |
| 2023 | $38,716 | 65.6 | 6.68% | 4 |
| 2022 | $38,900 | 66.6 | 5.23% | 4 |
| 2021 | $35,307 | 67.3 | 4.64% | 4 |
| 2020 | $34,449 | 68.7 | 5.25% | 4 |
| 2019 | $31,311 | 66.5 | 6.41% | 4 |
| 2018 | $30,173 | 66.3 | 6.13% | 4 |
| 2017 | $29,288 | 67.2 | 5.36% | 4 |
| 2016 | $28,601 | 66.0 | 5.05% | 4 |
| 2015 | $27,472 | 65.2 | 5.13% | 4 |
| 2014 | $26,288 | 63.9 | 4.88% | 4 |
| 2013 | $25,586 | 62.6 | 4.67% | 4 |
| 2012 | $25,341 | 61.7 | 4.64% | 4 |
| 2011 | $25,121 | 60.5 | 4.46% | 4 |
| 2010 | $25,477 | 61.1 | 4.70% | 4 |
| 2009 | $25,326 | 60.0 | 5.20% | 4 |
| 2008 | $24,567 | 61.4 | 5.89% | 4 |
Not seasonally adjusted. Yearly figures are simple averages of the quarters and are our calculation; 2026 has two quarters. The Fed’s older finance company series, which ended in 2011, used a different method and is not included.
Why it matters
Bigger loans and longer terms keep monthly payments within reach as car prices rise, but they mean paying interest for longer and owing more than the car is worth for a larger part of the loan. That can matter if the car is totaled, stolen or traded in early.
What you can do
- Check whether a carmaker’s promotional rate requires giving up a cash rebate. Sometimes the rebate plus a bank or credit union loan costs less overall.
- Get a preapproval from a bank or credit union before you shop, so you have a rate to compare with dealer financing.
- Look at the total interest and the term, not just the monthly payment. A shorter term costs more each month but less overall.
- Tax deduction: for tax years 2025 through 2028, you may be able to deduct up to $10,000 a year of interest on a loan taken out after December 31, 2024, to buy a new vehicle for personal use whose final assembly was in the United States. The deduction is available whether or not you itemize and is limited by income. IRS final rules for the deduction, which also set up new lender reporting, take effect November 9, 2026. Used vehicles do not qualify.
What these numbers are
The averages come from the Fed’s G.19 terms of credit for new-car loans at finance companies, published quarterly. They are averages across loans, not medians. They do not cover banks, credit unions or used-car loans. The Fed is retiring its Data Download Program tool used to build custom data files; the Fed points users to the Federal Reserve Bank of St. Louis’s FRED database for the same data.
Source
Board of Governors of the Federal Reserve System, G.19 Consumer Credit, release of October 7, 2026, terms of credit: finance companies, new car loans (series DTCTLVENA_N.M, DTCTLVENM_N.M, RIELPCFAN_N.M) and commercial bank new-car loan rates, downloaded October 19, 2026. Tax deduction: IRS Topic no. 505 and the final regulations published September 8, 2026. U.S. government data. Our tables are available under CC BY 4.0. Credit "My Credit Guide (mycreditguide.org)".
Steven Reynolds, "New-Car Loans at Finance Companies: Amount, Term and Rate," My Credit Guide, October 19, 2026, https://mycreditguide.org/data/finance-company-new-car-loans/.