The latest quarterly report from Edmunds finds U.S. new car buyers set new records for $1,000-plus monthly payments, 84-month deals and average amount financed, accompanied by shrinking down payments and increasingly scarce zero percent financing.

“It’s clear that buyers are pulling the few levers they can control to manage affordability, whether that’s by taking on longer loans, financing more or putting less money down — even if some of those decisions increase their total costs,” Ivan Drury, director of insights. “Consumers are continuously stretching to afford new vehicles in this market, and while tariffs haven’t directly driven these Q2 numbers, they’re certainly not going to make things any easier for shoppers moving forward.”

Nearly one in five new car buyers (19.3%) opted for a monthly payment of $1,000 or more in Q2, up from 17.8% a year ago. More than one in five (22.4%) agreed to at least an 84-month repayment term and the average amount financed was $42,388, more than $1,500 higher than the year-ago quarter.

Worse yet, the average down payment decreased by nearly $100, and fewer than 1% qualified for zero percent financing, an all-time low. Edmunds analyst Joseph Yoon warned the metrics pointed to future budget woes for some car buyers.

“While extended loan terms may make a monthly payment more palatable, consumers need to keep in mind the risks associated with a loan extended that far into the future, including increased costs for upkeep down the line and the risk of being underwater on the loan if the car is traded in before it’s paid off,” Yoon writes.

Read more at Edmunds