Monthly car payments decline despite rising auto insurance rates

The auto industry is slowly becoming more affordable and monthly payments for new vehicles average $735 as of the first quarter. Although this is still high, it’s a slight decline from the previous quarter, Edmunds reported.

Used vehicles also have lower average monthly payments. These payments dipped to $546 at the beginning of 2024, down from $561 in the fourth quarter and from $551 in the first quarter of 2023, according to Edmunds’ report.

And many drivers are still choosing high monthly payments well over the $735 average.