Automakers just wrapped a pretty record-setting June. But new Edmunds data shows the finance side of those deals is setting records of its own, just with far less encouraging implications.
Driving the news: In a report highlighting Q2 data, Edmunds indicated that nearly one in four shoppers opted for loan terms of 84+ months, or in other words, about seven years.
In another record, 36.5% of shoppers during the same period “took on a loan of 73 months or longer, up from 27.3% a decade prior,” per the report.
The average amount financed, meanwhile, jumped $257 from Q1 and $1,768 from last year to $44,156. This is, you guessed it, another record in Edmunds’ data set.
Average monthly payments hit a record $777, marking the third consecutive quarter it's set a new high, per Edmunds.
And finally, tying a record with Q4 2025, the share of buyers spending $1,000+ on their monthly payment came in at 20.3%, or one in five people.
That figure, Edmunds says, is slightly above the first-quarter share of 20%.
Not helping the situation: Average down payments in Q2 dipped to $5,815, down from $6,206 in Q1 and $6,433 in Q2 2025.
Looking at down payments as a share of the total car purchase, the report says they “represented just 11.6%,” which is the smallest share since Q3 2020.
Oh, and adding to the records set, total interest paid (on average) “over the life of a new-vehicle loan” amounted to $9,811 in Q2.
That’s up 2.3% from Q1 and 2% from last year, according to our analysis of the report, which does explain that the climb in that total can be tied to elevated APRs.
What they’re saying: “The Q2 data perfectly illustrates the stark reality of today’s new-vehicle market: Affordability is such a massive hurdle that buyers are forced to stretch their budgets to the absolute limit just to get into a new vehicle,” Jessica Caldwell, Edmunds’ head of insights, said in the report.
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“When you see loan terms extending to record lengths, down payments shrinking, and monthly payments hitting all-time highs, you’re looking at a clear recipe for long-term financial strain.”
Bottom line: Recent sales reports from OEMs, which we covered here, show that shoppers are still out there spending their money, which is good. However, this data from Edmunds also highlights what it’s taking for the average consumer to do, which can’t be ignored.
“Until we see a major shake-up in automaker incentives, a meaningful drop in interest rates, or a shift toward a more affordable mix of vehicles — none of which appear to be on the horizon — consumers will have to keep walking this financial tightrope,” Caldwell said.
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