March Auto Loan Payments Exceed $800; Nearly 20% of Buyers Pay Over $1,000 Monthly

The average monthly car payment for new vehicles rose to $806 in March, with nearly one-fifth of buyers paying over $1,000 per month. Most buyers with payments exceeding $1,000 opted for premium models or pickup trucks, while mainstream non-pickup vehicles accounted for only 9.3% of such loans. Part of the reason for higher monthly payments is the growing prevalence of negative equity trades—situations where the outstanding loan balance on a traded-in vehicle exceeds its actual value, with the difference rolled into the new auto loan. In March, 31.2% of used-vehicle trade-ins involved negative equity, up from 26% in 2025 and 24% in 2024. To reduce monthly payments, consumers are increasingly opting for longer loan terms. In March, loans with terms of 84 months or longer accounted for nearly 13% of new vehicle sales, with 34.1% of these extended-term loans used for pickups (which represented 18.4% of total new vehicle sales). Meanwhile, 72-month loans made up 40.5% of new vehicle financing. Data also shows that longer loan terms correlate with earlier returns to the market. Overall, 20% of new car buyers return to purchase another vehicle within three to four years, but this share jumps to 44.6% among those with 84-month loans.