- The number of people paying $1,000+ every month for their cars has hit an all-time high.
- 19 % of buyers committed to $1,000+ in Q2, up from 18 % in Q1, Edmunds reports.
- The 22 % of buyers that signed up for 84 months loans also represented a new record.
New data showing how buyers paid for their new cars in recent months has shone a spotlight on just how financially stretched many Americans are. A record one in five buyers committed to making monthly payments of at least $1,000, and and an even greater number signed up for long seven-year loans.
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Related: Your Next Corvette Will Cost Thousands More For 2026
Buyers agreeing to five-figure payments accounted for 19.3 percent of the market, according to figures from Edmunds, that number up from 17.7 percent in Q1 2025 and 17.8 percent in Q2 of last year. The rise in monthly payments makes sense when you consider that the amount of money buyers are financing has also risen to record levels.
Loan Amounts Keep Climbing
The average amount financed on a new car reached $42,388 in Q2 2025, up from $41,473 in Q1 2025 and $40,873 in Q2 2024, in part because shoppers are putting down less cash to get the ball rolling. The average downpayment was $6,433 in Q2 2025, reduced from $6,511 in Q1 2025 and $6,579 in Q2 2024.
With car loan costs at an all-time high, it’s no surprise that more buyers than ever are taking out extra-long loans to make the price of a new vehicle look even vaguely affordable. A total of 22.4 percent of buyers put their signature to an 84-month loan in Q2, compared with 20.4% in Q1 2025 and 17.6% a year ago.
NEW-CAR FINANCE DATA
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The only set of figures contained in the data set that has come down seems to be the number of zero percent finance deals. A minuscule 0.9 percent of new vehicle loans offered zero-rate finance in Q2, the lowest share Edmunds has seen since 2004. Q1’s share was also low at 1 percent, but go back to Q2 2024, when interest rates were already high, and 2.9 percent of deals were zero-rated.
The report cautions that while some buyers take on longer loan terms to reduce payments, those that are really stretched might be better off leasing. Though they won’t build up equity, the smaller monthly cost means less chance of ending up underwater.
Used Cars Remain an Alternative, With a Catch
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Some buyers worried about new-car affordability in Q2 might have also switched their attention to used cars, which also come with lower payments. The report says that the average used car payment in Q2 was $559, versus $756 for a new car, but the shocking 10.9 percent APR, while admittedly down from 11.5 percent in Q2 2024, means you’re paying much more in finance costs than do new buyers (average APR 7.2 percent).
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USED-CAR FINANCE DATA
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