Automakers continue to navigate significant cost pressures and there’s still a substantial gap between prices and what many households can comfortably afford
Santa Monica, Calif.—New-vehicle financing trends reached new extremes in the third quarter as car buyers borrowed record amounts, stretched their loans to historic lengths, and committed to record-high monthly payments, according to the latest analysis from car shopping site Edmunds.
Edmunds’ Q3 2026 data on financed vehicle purchases shows:
- New Record: Shoppers are financing more than ever to buy new vehicles. The average amount financed for a new vehicle climbed to a record $44,664 in Q3 2026, compared with $44,156 in Q2 2026 and $42,744 in Q3 2025.
- New Record: More than one in four new-car buyers are now financing their vehicles for 84 months or longer. Loans with terms of 84 months or more accounted for a record 25.5% of financed new-vehicle purchases in Q3 2026, up from 23.9% in Q2 2026 and 21.8% in Q3 2025.
- New Record: New-vehicle monthly payments reached another record high. The average monthly payment on financed new-vehicle purchases rose to $787 in Q3 2026, up from $777 in Q2 2026 and $756 in Q3 2025.
- New Record: New- and used-car shoppers are taking on $1,000-plus monthly payments at higher rates than ever. The share of new-car buyers committing to monthly payments of $1,000 or more reached a record 21.2% of financed purchases in Q3 2026, up from 20.3% in Q2 2026 and 19.1% in Q3 2025. Among used-vehicle buyers, 6.5% took on $1,000-plus monthly payments, also an all-time high, compared with 6.3% in Q2 2026 and 6.1% in Q3 2025.
- New Record: Together, these trends are pushing borrowing costs to new all-time highs. The average total interest paid over the life of a financed new-vehicle purchase climbed to a record $9,938 in Q3 2026, up from $9,811 in Q2 2026 and $9,442 a year ago. The increase came even as the average APR for new-vehicle purchases held steady at 7.0% in Q3 2026 compared to 7.0% in Q2 2026 and 7.0% a year ago, underscoring the impact of buyers financing larger amounts over longer periods.
The affordability pressures reflected in Edmunds’ Q3 auto finance data also come amid newly announced changes to federal fuel economy requirements.
“Any potential relief is welcome in an affordability environment like this, but changes to fuel economy requirements don’t necessarily translate into lower prices on dealer lots,” said Jessica Caldwell, Edmunds’ head of insights. “Automakers continue to navigate significant cost pressures, and there’s still a substantial gap between where vehicle prices are today and what many households can comfortably afford.”
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