The average monthly new car payment in the U.S. has reached a record $787, according to data analyzed by Edmunds. This figure is a $31 increase year-over-year and a $10 increase from the second quarter of 2026.
New vehicle loan payments are not the only aspect of car buying that’s reaching new heights. A quarter of new-car buyers are financing their vehicles for 84 months or longer, with 25.5 percent of new vehicles financed during the third quarter of 2026 having loans with terms of 84 months or more.
Financing Trends
The average amount financed for a new vehicle has also climbed to a record $44,664, compared to $42,744 in the third quarter of 2025. This increase, combined with longer loan terms, results in customers paying more interest than ever before.
Third-quarter car buyers are projected to pay a record $9,938 in interest over the life of a financed new vehicle, nearly $500 more in interest year-over-year. The average APR for new-vehicle purchases is currently sitting at 7.0 percent.
Read Also: Porsche Plans Exclusive 911s and Mid-Engine Supercar
Consumer Resilience
Despite these record-high monthly payments and loan terms, buyer demand for new vehicles hasn’t dropped off. Jessica Caldwell, Edmunds’s head of insights, states that consumers are adapting by allocating more of their household budgets to their vehicles and becoming more proactive about shopping around for financing.
A record 21.2 percent of new-car buyers committed to monthly payments over $1,000 in the third quarter of 2026. This trend is also being seen in used-car shoppers, with around 6.5 percent committing to monthly payments over $1,000 in the same time period.
Ivan Drury, Edmunds’s director of insights, notes that while a longer loan term may be the only way for some shoppers to get the vehicle they need, it’s essential to understand the trade-off. Buyers should consider the total cost of the vehicle, including interest, rather than just focusing on the monthly payment.
Edmunds’s data indicates that consumers are finding ways to manage their budgets and make adjustments to afford the vehicles they want. They are taking a more proactive approach to financing, which is helping to drive the demand for new vehicles.
