U.S. New-Car Payments Reach $787 as Longer Loans Gain Share

The average monthly payment on a financed new vehicle reached $787 in the third quarter of 2026, as loans of at least 84 months grew more common and estimated lifetime interest hit a quarterly record.

The payment average rose from $777 in the second quarter and $756 in the third quarter of 2025. Loans with terms of 84 months or longer accounted for 25.5% of financed new-vehicle purchases, up from 23.9% in the prior quarter and 21.8% a year earlier. That category includes loans longer than seven years. The average loan term was 70.5 months.

The average amount financed reached $44,664, compared with $44,156 in the second quarter and $42,744 a year earlier. Estimated interest over the life of a loan averaged $9,938, up from $9,811 in the prior quarter and $9,442 a year earlier. The average annual percentage rate held at 7% in each period.

Payments of $1,000 or more represented 21.2% of financed new-car purchases, compared with 20.3% in the second quarter and 19.1% a year earlier. The average down payment was $5,554. These figures cover financed purchases, not all new-car buyers.

“Stretching out a loan shouldn't be a way to talk yourself into a vehicle that doesn't make sense for your budget when you look at the total cost,” said Ivan Drury, Edmunds’ director of insights.

Auto loan balances across U.S. households rose by $28 billion to $1.71 trillion in the second quarter. Buyers with incomes below $100,000 accounted for 37% of new retail sales in 2025, down from 50% in 2020.