New-car buyers also took on a record share of loans with 84-month or longer terms.

A growing number of car buyers are committing to historically high monthly payments and longer loan terms, according to new data from Edmunds. The firm’s Q2 2025 analysis shows that 19.3% of new-vehicle buyers agreed to monthly payments of $1,000 or more — the highest share ever recorded and a jump from 17.7% in Q1 2025 and 17.8% a year ago.

Edmunds' findings highlight several cost-stretching behaviors as consumers navigate persistent affordability challenges. The share of new-car loans with 84-month or longer terms reached 22.4%, up from 20.4% in Q1 and 17.6% in Q2 2024 — also a record. Additionally, the average amount financed climbed to $42,388, setting another all-time high.

“It's clear that buyers are pulling the few levers they can control to manage affordability, whether that's by taking on longer loans, financing more or putting less money down, even if some of those decisions increase their total costs,” said , Edmunds’ director of insights. “Consumers are continuously stretching to afford new vehicles in this market.”

The average down payment declined to $6,433 in Q2, compared to $6,511 in Q1 and $6,579 in Q2 2024, signaling reduced upfront spending. Meanwhile, 0% finance deals fell to just 0.9% of loans, the lowest share Edmunds has recorded since tracking began in 2004.

The average annual percentage rate (APR) for new vehicles remained elevated at 7.2% in Q2, slightly above Q1's 7.1% and just under the 7.3% mark from a year ago.

Drury noted that recent tariff discussions have not yet significantly shaped the data: “While tariffs haven't directly driven these Q2 numbers, they're certainly not going to make things any easier for shoppers moving forward.”

Edmunds analysts also warned about the long-term financial risks of ultra-long loan terms.

“While extended loan terms may make a monthly payment more palatable, consumers need to keep in mind the risks... including increased costs for upkeep down the line and the risk of being underwater on the loan,” said Joseph Yoon, consumer insights analyst at Edmunds. He suggested that leasing could be a viable alternative for some shoppers, offering lower monthly payments and flexibility to rebuild financial stability.