New-car buyers borrowed more, stretched loans longer and committed to bigger monthly payments than ever in the third quarter, according to Edmunds data released Oct. 1. The average amount financed for a new vehicle hit a record $44,664, and the average monthly payment rose to a record $787.
The share of buyers taking loans of 84 months or longer climbed to a record 25.5% of financed new-vehicle purchases, up from 21.8% a year earlier. More than one in five financed buyers, 21.2%, committed to a payment of $1,000 a month or more, also a record. Among those buyers, 69% chose terms of 72 months or longer.
New-vehicle financing averages
| Measure | Q3 2025 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Amount financed | $42,744 | $44,156 | $44,664 |
| Monthly payment | $756 | $777 | $787 |
| APR | 7.0% | 7.0% | 7.0% |
| Loan term (months) | 70.0 | 70.4 | 70.5 |
| Share of loans 84+ months | 21.8% | 23.9% | 25.5% |
| Share with $1,000+ payment | 19.1% | 20.3% | 21.2% |
| Total interest over loan | $9,442 | $9,811 | $9,938 |
| Down payment | $6,021 | $5,815 | $5,554 |
Source: Edmunds. Figures are averages for financed new-vehicle purchases.
The average APR held at 7.0%, unchanged from a year ago, so the record interest bill, $9,938 over the life of the average loan, comes from bigger balances and longer terms rather than higher rates. Down payments moved the wrong way, falling to $5,554 from $6,021 a year earlier.
Used-car buyers face their own squeeze. The average used-vehicle loan was $30,703 at a 10.6% APR, with a $582 monthly payment, and a record 6.5% of used buyers took on payments of $1,000 or more.
"Stretching out a loan shouldn't be a way to talk yourself into a vehicle that doesn't make sense for your budget when you look at the total cost." — Ivan Drury, director of insights, Edmunds
Rates may be headed higher
The steady 7% APR may not last. On Sept. 16, the Federal Reserve raised its benchmark federal funds rate by a quarter point to a target range of 3.75% to 4%, saying the move will support "a timelier return" to its 2% inflation goal. Many auto loans track five- and 10-year Treasury yields, which CNBC reported had climbed to their highest levels since 2006. "Given the run-up in bond yields recently, we expect that auto loan rates will be increasing as well," Patrick Manzi, chief economist of the National Automobile Dealers Association, told CNBC. Cox Automotive chief economist Jeremy Robb said new-vehicle loan rates had already risen about 20 basis points over the prior two months.
How to keep a loan in check
Edmunds consumer insights analyst Joseph Yoon, speaking to CNBC, suggested three steps. First, shop lenders beyond your own bank, including federal credit unions, many of which have easy membership requirements. Second, be open to other brands and models, because automakers' finance arms sometimes run promotional rates to move specific vehicles. Third, get preapproved before visiting a dealer so you have a baseline rate to compare against.
Edmunds also recommends weighing the total cost of the loan, not just the payment, and using an auto loan calculator to see how the down payment, term and interest rate change both numbers.