Buying a new car is getting more expensive, with monthly payments, loan amounts and interest costs reaching record highs in the third quarter of 2026, according to a new report from Edmunds.
The average monthly payment for a financed new vehicle climbed to $787 from $777 in the second quarter and $756 during the same period last year, according to Edmunds’ analysis released Oct. 1.
The average amount financed for a new vehicle also reached a record $44,664, up from $44,156 in the second quarter and $42,744 in the third quarter of 2025.
As vehicle costs rise, more buyers are extending their repayment periods to make monthly payments more manageable.
Loans lasting 84 months or longer — seven years or more — accounted for 25.5% of financed new-vehicle purchases in the third quarter. That’s up from 23.9% in the previous quarter and 21.8% a year earlier.
More than one in five buyers financing a new vehicle also committed to monthly payments of at least $1,000. That share reached a record 21.2%, compared with 20.3% in the second quarter and 19.1% a year earlier.
Among new-car buyers with monthly payments of $1,000 or more, 69% chose loan terms of at least 72 months.
Longer loan terms and larger borrowing amounts are also increasing the total cost of buying a vehicle.
The average total interest paid over the life of a financed new-car purchase reached a record $9,938 in the third quarter, up from $9,811 in the second quarter and $9,442 a year earlier.
The average annual percentage rate, or APR, for new-car financing remained at 7% during the quarter, unchanged from the previous quarter and the same period last year.
Used-car buyers also faced higher costs. The average monthly payment for a financed used vehicle rose to $582, compared with $576 in the second quarter and $566 a year earlier.
The average amount financed for a used vehicle reached $30,703, while the average APR was 10.6%.
Edmunds analysts say buyers should consider the total cost of a loan, not just whether the monthly payment fits their budget. A longer repayment period can lower monthly payments but may increase the amount of interest paid over time.
The report recommends comparing financing options and considering how the down payment, interest rate and loan term affect the overall cost of a vehicle.
