FLORIDA – A study by Edmunds found that a record 1 in 5 new-car buyers committed to monthly payments of more than $1,000 a month in Q2 2025.
The share of these new-car buyers committing to monthly payments of $1,000 or more hit an all-time high of 19.3% in Q2 2025, compared to 17.7% in Q1 2025 and 17.6%.
The study also shows that more buyers are opting for extended loan terms than ever before. Eighty-four-month or more loans account for 22.4% of new-vehicle financing, which is up from 20.4% in Q1 2025 and 17.6% a year ago.
Larger loans are becoming standard, with the average amount financed for new cars climbing to $42,388 in Q2 2025, up from $41,473 in Q1 2025 and $40,873 in Q2 2024.
Edmunds’ study also found that shoppers are putting less money down for purchases. The average down payment was $6,433 in Q2 2025, down from $6,511 in Q1 2025 and $6,579 in Q2 2024.
Zero percent finance deals sank below 1% for the first time ever. In Q2 2025, 0% finance deals accounted for 0.9% of new-vehicle loans, the lowest share Edmunds has on record since 2004 and down from 1% in Q1 2025 and 2.9% in Q2 2024.
Interest rates remain historically high, with the average new car APR in Q2 2025 being 7.2% compared to 7.1% in Q1 2025 and 7.3% in Q2 2024.
“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, Edmunds’ director of insights, said. “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.”
As more buyers lean on extended loan terms, Edmunds analysts caution that this strategy could carry consequences down the road.
