Automotive
Automobile shopping in 2025 comes with a reality check the moment you begin running the numbers. Recent data from Experian shows the common monthly payment on a brand new vehicle has climbed to $748 as of the third quarter of 2025, landing uncomfortably near the psychological $750 mark. Prices are usually not doing shoppers any favors either, and while the market is calmer than the height pandemic chaos, “calmer” doesn’t robotically mean “low-cost.”
Experian’s snapshot of Q3 2025 puts the common new-vehicle transaction price at $42,332, paired with a mean rate of interest of 6.56%. Buyers are also stretching loans out longer, with the common term now at 69 months, and roughly 81% of new-vehicle purchases being financed. The speed of the climb is what really stands out. Back in Q4 2019, the common new-car payment was $554. By Q3 2021 it had risen to $617, and by late 2022 it had jumped to $716. In Q3 2023 it was $726, and by Q4 2024 it reached $742. Now, in 2025, the common sits at $748 and still looks like it could keep creeping.
Used cars still are available cheaper month-to-month, but “cheaper” is doing a variety of work in that sentence. The typical used-car payment hit $532 in Q3 2025, tied to a mean transaction price of $27,128 and a tricky 11.40% average rate of interest. The typical term can be long at 67 months, even whether it is barely shorter than recent. Yet one more twist from Experian: far fewer used-car buyers are financing in the primary place, with about 35% taking out loans. That implies many patrons are either bringing extra cash, buying less automotive, or opting out entirely.
The takeaway isn’t just that payments are higher, but that the levers to administer them have narrowed. Longer terms could make a monthly number look friendlier while quietly locking buyers into nearly six years of payments, which is an extended time to be exposed to depreciation or life changes. With $700-plus payments going from rare to routine in a number of short years, the smart play is treating the monthly payment as a budget line item, shopping the loan as aggressively because the vehicle, and being willing to walk away when the mathematics doesn’t make sense.
FOLLOW US TODAY:
Darryl Taylor Dowe is a seasoned automotive skilled with a proven track record of leading successful ventures and providing strategic consultation across the automotive industry. With years of hands-on experience in each business operations and market development, Darryl has played a key role in helping automotive brands grow and adapt in a rapidly evolving landscape. His insight and leadership have earned him recognition as a trusted expert, and his contributions to Automotive Addicts reflect his deep knowledge and keenness for the business side of the automotive world.
This Article First Appeared At www.automotiveaddicts.com
