Share of used and new U.S. vehicles with financing 2022-2024

Most of the new vehicles in the United States in 2024 were acquired using some kind of financing, such as loans or leases. Meanwhile, only slightly over a third of used cars were purchased using some financing option. Over 80 percent of new cars had financing, a figure that has remained relatively stable in the past three years. In 2024, the share of used cars acquired with financing was somewhat lower than in 2022. The interest rates for automobile loans in the United States have significantly risen since early 2022, which has increased the burden on borrowers.

How common is delinquency in the context of auto financing?

The delinquency rate refers to the proportion of loans within a portfolio or market segment that are past due or in default. In 2022, the share of 90+ delinquent auto loans in the United States stood at nearly four percent. However, the share of auto loan borrowers who had loan payments that were overdue by at least 90 days had risen significantly by 2024.

Which age group exhibits more auto loan delinquency?

There are several factors that can influence the likelihood of a certain group having higher delinquency rates, such as financial literacy, income disparities, credit histories, and age. When looking at the delinquency rate by age group in the U.S. in 2023, it could be observed that people aged 18 to 29 had the highest share of car loans that eventually led to serious delinquency. In contrast, people that were over 50 years old had a much lower serious average delinquency rate at less than two percent that year.