Yahoo Finance·2026-02-04 10:00Core Insights - Affordability is a significant concern for both auto lenders and dealers, impacting consumer participation in the market [2] - 2026 vehicle sales are projected to decline due to higher prices and economic uncertainty [2] Vehicle Financing Trends - Average monthly payments for new-vehicle loans reached $785 in Q4 2025, marking a 3.7% increase from the previous year [3] - The average amount financed for new-vehicle loans was $44,650 in Q4 2025, up 5.3% year-over-year [4][6] - Average used-vehicle payments were $541 for loans originated in Q4 2025, reflecting a 3.6% increase from the prior year [5] Credit Market Conditions - Overall delinquencies in the auto loan market appear manageable by historical standards, with good access to credit for most new-vehicle shoppers [6] - Despite a low share of loans to subprime borrowers, losses and potential losses on subprime loans are increasing due to rising delinquencies [7]