California Policy Lab

During the past ten years, there has been a dramatic rise in the size and length of new auto loans, especially since the start of the pandemic. The average new auto loan (for a new or used car) in California is now over $34,000, and is a full $7,300 more than it was just 3 years ago. Loan lengths and monthly payments have also risen considerably over that period. The share of car loans that are 30+ days delinquent is also starting to tick upwards, from 1.5% in mid-2021 to 2.7% by the end of 2022.1 This publication uses nominal dollars, but the California Credit Dashboard includes an option to adjust for inflation.

This work has been supported, in part, by the University of California Multicampus Research Programs and Initiatives grants MRP-19-600774 and M21PR3278