Like everything else, new-car prices keep rising. While the average price of a new car continues to hover around $50,000, the amount people finance, and for how long, is increasing.

A new report from Edmunds reveals that borrowers took out larger loans last quarter to finance their vehicle, averaging $44,664. That’s up from $44,156 in the second quarter of 2026 and from $42,744 a year ago, but that’s not all.

Just over a quarter of new-car buyers—25.5 percent—are financing their vehicles for 84 months or longer, which is up from 21.8 percent a year ago, and those monthly payments have crept up, too. The average monthly payment rose to $787 last quarter, up from $756 a year ago, and has been on an upward trend.

Even as prices rise, people are still buying new cars. Jessica Caldwell, Edmunds' head of insights, said:

‘Even as monthly payments hit record highs, loan terms stretch to historic lengths, and four-figure monthly payments become more common, buyer demand for new vehicles hasn't dropped off.'

According to Caldwell, buyers are adapting “to find ways to make the numbers work,” yet monthly payments are still rising.

According to the Edmunds report, 21.1 percent of financed purchases last quarter resulted in monthly payments of $1,000 or more. They accounted for 19.1 percent of loans just one year ago.

Even used-car buyers can't avoid four-figure payments . 5 percent of loans had payments of $1,000 or more. 1 percent in Q3 2025, but the amount being financed is also increasing.

Source link