On the Dash:
- Average new-car amount financed hit a record $44,664, and average monthly payments reached a record $787.
- Loans of 84 months or longer made up a record 25.5% of financed new-vehicle purchases.
- Total interest averaged a record $9,938 per financed new car while rates held at 7.0%.
According to a recent Edmunds report, new-car buyers financed a record average of $44,664 in the third quarter of 2026. Loans of 84 months or longer accounted for a record 25.5% of financed new-vehicle purchases. That compares with 23.9% in the second quarter and 21.8% a year ago. The average monthly payment on a financed new vehicle rose to a record $787, up from $777 in the second quarter and $756 a year ago.Â
Monthly payments and interest hit new highs
A record 21.2% of new-car buyers agreed to monthly payments of $1,000 or more, up from 20.3% in the second quarter and 19.1% a year earlier. Among used-vehicle buyers, 6.5% did the same, which was also a record high.
Total interest on a financed new-vehicle purchase reached a record $9,938, up from $9,442 a year earlier. However, the increase came despite the average annual percentage rate (APR) holding steady at 7.0%. Edmunds said larger loan amounts spread over longer terms drove the higher cost.
Buyers with the highest payments lean on the longest terms
Edmunds also reported that among new-car buyers paying $1,000 or more monthly, 69% chose terms of 72 months or longer. Demand for new vehicles has not dropped off despite record payments. According to Edmunds’ Head of Insight, Jessica Caldwell, buyers are budgeting more for vehicles and shopping around for financing.
Additionally, buyers should consider more than just the monthly payment, said Ivan Drury, Edmunds’ Director of Insights. They’re already financing nearly $45,000 and paying nearly $10,000 in interest. A longer loan term may be the only way to afford a vehicle they need.
Newly announced changes to federal fuel economy requirements may offer some relief, but they don’t necessarily mean lower prices at dealerships, Caldwell said. Automakers still face significant cost pressures.
