Average auto loan debt grew 5.2% in 2023. How will it affect car buyers in 2024?

By Chris Horymski | Stacker Canva (Stacker) – The average auto loan balance held by consumers in the United States increased 5.2% to $23,792 in 2023, according to Experian data. As in 2022, this increase was broadly based, impacting all U.S. regions and types of consumers who are financing their new and used vehicles. The average balance did not grow as much as it did in 2022, however, as vehicles joined most other goods and services that experienced slowing price increases last year. As part of our continuing coverage of consumer credit and debt, Experian looked at its own anonymized credit data to observe recent trends in auto financing and analyze how those trends may continue to affect car buyers in 2024. Experian Total auto debt climbs to $1.51 trillion Drivers owed $1.51 trillion on cars, motorcycles and other personal vehicles as of the third quarter (Q3) of 2023, according to Experian data, an increase of $108 billion over 2022. The increase is attributable to a combination of factors: Increased costs for new vehicles Sharply higher rates for both new and used car loans Longer terms on auto loans—the average auto loan term for a new vehicle is more than...