New Car Buyers Stretching Loan Terms to Seven Years as Average Payment Hits Record $777

New-vehicle shoppers are increasingly turning to seven-year loans to afford monthly payments that have just hit a record $777, according to Edmunds data for Q2 2026. A staggering 23.9% of buyers who financed a new car last quarter locked in loans of 84 months or longer—seven years—while 36.5% chose terms of 73 months or more. The average amount financed climbed to $44,156, up $1,768 year-over-year, as buyers put down less cash: the average down payment dropped to $5,815, the lowest share of the purchase price in nearly six years at just 11.6%. The average transaction price for a new vehicle hovers around $50,000, pushing buyers toward longer loans to keep monthly payments manageable. Despite stretching loan terms, the average monthly payment still reached $777, a new record for the third straight quarter, and 20.3% of new-vehicle financers are paying $1,000 or more per month. Total lifetime interest payments now average $9,811, up $195 from a year ago, with an average APR of 7%. The trend mirrors the used-car market, where 6.3% of buyers are paying $1,000 or more monthly, and the average amount financed rose to $30,414. Edmunds’ Jessica Caldwell called the data a clear sign that affordability remains the biggest hurdle in today’s new-vehicle market, forcing buyers to walk a financial tightrope just to get into a new car.