New-vehicle financing hit a cascade of records in the second quarter of 2026, with nearly one in four buyers stretching their loans to 84 months or longer as affordability pressures pushed shoppers to borrow more, put less down and pay more each month, according to Edmunds.

Loans of 84 months or longer accounted for a record 23.9% of Q2 new-vehicle financing, while 36.5% took loans of 73 months or longer, also a record, according to the report. The average monthly payment hit an all-time high of $777, the third consecutive quarter at a record level, while the average amount financed climbed to a record $44,156.

Down payments continue to shrink, falling to $5,815 from $6,433 a year earlier and representing just 11.6% of the average purchase price, the lowest share since Q3 2020. Total interest paid over the life of the average new-vehicle loan reached a record $9,811, with APRs ticking back up to 7% in Q2.

“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,” writes Jessica Caldwell, Edmunds’ head of insights, in a release. “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.”

“Car shoppers are caught in a dangerous practice of focusing heavily on their monthly payment while ignoring the potential long-term damage to their wallets,” adds Ivan Drury, Edmunds’ director of insights. “Pushing loan terms past six or seven years might make an average monthly payment more digestible today, but it’s a mathematical trap.”

Analysts note used-vehicle buyers aren’t immune: The share of used-car purchases with monthly payments of $1,000 or more rose to a record 6.3% in Q2, and the average amount financed climbed to $30,414, up from $29,080 a year earlier, according to the report.

Read the full report at Edmunds