According to the latest data from Edmunds, car buyers in the first quarter of 2026 faced record-high costs - and are increasingly turning to longer loan terms to manage affordability.
New-Vehicle Financing Records
Amount Financed: Hit a record high of $43,899, up from $41,473 a year ago.
Monthly Payments: Reached an all-time high of $773. Notably, 20% of buyers now have payments of $1,000 or more.
Loan Terms: 84-month (or longer) loans reached a record 22.9% of all new-car purchases as buyers stretch out debt to lower monthly costs.
Key Market Shifts
Lower Down Payments: The average down payment dropped to $6,206, suggesting consumers are prioritizing immediate cash flow over long-term interest savings.
Interest Rates: The average APR for new vehicles rose to 6.9% in Q1, though it remains slightly lower than the 7.1% seen in Q1 2025.
Used Market Comparisons: While still expensive, used car financing is slightly more "affordable" with an average monthly payment of $559 and a financed amount of $29,314.
Quarterly Data Overview (Averages)
Metric | New Vehicles (Q1 2026) | Used Vehicles (Q1 2026) |
Amount Financed | $43,899 | $29,314 |
Monthly Payment | $773 | $559 |
Average APR | 6.9% | 10.8% |
Down Payment | $6,206 | $3,993 |
This reinforces the idea of using our Car Inspection Score when trying to find a great used car price and not bury yourself in unnecessary debt.
Thanks for reading everybody!
-Paul