Nearly a Quarter of U.S. New Car Buyers Opt for 7-Year Loans, Pushing Average Monthly Payment to Record $777

In the second quarter of 2026, 23.9% of new-car buyers in the U.S. opted for loan terms of at least 84 months (seven years)—a record high—while another 36.5% chose repayment periods of 73 months or longer. The average transaction price for new vehicles neared $50,000 during the same period, with the average loan amount reaching $44,156, up $257 from the first quarter and $1,768 higher than a year earlier. Despite longer loan terms, the average monthly payment for new cars rose to $777—the third consecutive quarterly record—equating to annual expenditures of $9,324. The share of buyers with monthly payments of $1,000 or more stood at 20.3%, matching the historical peak and slightly exceeding the first quarter’s level. Meanwhile, consumers’ average down payment fell to $5,815, or 11.6% of the vehicle’s total price—the lowest in nearly six years—down from $6,206 in the first quarter and $6,433 a year earlier. Extended loan durations have driven up interest costs, with the average total interest paid over the life of a new-car loan reaching $9,811, an increase of $195 from the prior year, at an average annual percentage rate (APR) of 7%. Loan burdens for used vehicles also intensified. In the second quarter, 6.3% of used-car borrowers had monthly payments of $1,000 or more—a record high—as the average used-car loan amount rose to $30,414 from $29,080 a year earlier.