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Like the cost of eggs, gasoline and other items, MSRP (manufacturer's suggested retail price) on vehicles has increased over the years. According to data from Lending Tree, the average new car payment in Q2 2025 was $745, up 1.9% from the previous year.
Average car payment refers to the amount someone must pay on their auto loan each month. This amount is determined by factors like the price of the car, your credit score, interest rate, and the terms of the loan. Car payment amounts also differ by state due to factors like cost of living, vehicle choice, and registration fees.
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The average car payment for a new car is $745. According to data from Experian, more than 4% of people are paying $1,000 or more per month for a car. 
Used car payments aren't far behind. Lending Tree notes that the national average for used car payments is $521.
Your individual car payment may be higher or lower than the average based on factors such as:
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On average, people pay the highest monthly car payments in Texas, Wyoming, Louisiana, and New Mexico — each state's average is above $700. States with the lowest average payments include Massachusetts, Michigan, and Rhode Island, which all have numbers under $575.
Here's a look at average monthly auto loan payments by state — from the highest to lowest — based on data from Experian:
Regionally, people in the Great Lakes states and New England tend to have lower monthly car payments than those in the South or on the West Coast. Overall, Midwestern states tend to have lower averages than you'll find on the coasts.
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Average vehicle prices may include both new and used cars (the mix of which can vary by state, affecting typical monthly payments). 
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Car payments trending up is bad for any budget, but you can work proactively to keep your monthly auto loan payment in check.

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