Nearly ¼ of New Car Buyers Opt for 84+ Month LoansFREDERIC J. BROWN - Getty ImagesIf you've looked around at new vehicle prices lately and thought that they seemed high, you're not crazy. Last month saw the average new vehicle price in the United States hit nearly $52,000, smashing the previous record set last summer. Of course, people are still buying cars, but those higher prices are coming with some consequences: according to a recent report from Edmunds, some 24 percent of new car buyers opted for an 84-month loan-or-longer loan term on their purchase during the second quarter of 2026.While the concept of an 84-month loan isn't entirely new to the car world, the rate at which customers are leaning on them has skyrocketed in recent years. That 23.9 percent of buyers figure is an all-time record, as is the rate of customers opting for loans of 73 months or longer; according to Edmunds, that figure reached 36.5 percent in Q2, up from 27.3 percent a decade ago.A look at the average new car payment gives some insight into why those loans are growing more popular, with payments averaging $777 as of Q2 2026. Part of the reason those payments are so high, despite the longer loan terms on average, comes down to the fact that people are simply borrowing more money. Edmunds found that the average buyer financed about $44,156, up from $42,388 just one year ago. Furthermore, customers have started putting less money down on their new vehicle purchases; the average new vehicle down payment sat at $5815 during Q2, which is down from $6433 this time last year. Down payments averaged just about 11.6 percent of total purchase price last quarter, which is the lowest figure since Q3 2020.Brandon Bell - Getty Images"The Q2 data perfectly illustrates the stark reality of today's new-vehicle market: Affordability is such a massive hurdle that buyers are forced to stretch their budgets to the absolute limit just to get into a new vehicle," said Jessica Caldwell, head of insights at Edmunds. "When you see loan terms extending to record lengths, down payments shrinking, and monthly payments hitting all-time highs, you're looking at a clear recipe for long-term financial strain."AdvertisementAdvertisement"Unfortunately, this is the new normal for new-car buyers," added Caldwell. "Until we see a major shake-up in automaker incentives, a meaningful drop in interest rates, or a shift toward a more affordable mix of vehicles — none of which appear to be on the horizon — consumers will have to keep walking this financial tightrope."The combination of negative equity rolled over from previous purchases and high interest rates is also a contributing factor. The typical new car buyer during Q1 of 2026 owed an average of $7813 more than the vehicle was worth, with the average vehicle sitting at 4.3 years old. Both of those are records, with the former up 42 percent from just five years ago. This comes as low-interest financing options hit all-time lows; just 1.2 percent of new vehicle sales featured a 0-percent APR loan in Q2.Brandon Bell - Getty Images"Pushing loan terms past six or seven years might make an average monthly payment more digestible today, but it's a mathematical trap," said Ivan Drury, Edmunds's director of insights. "When you pair a seven-point-oh percent APR with an eighty-four-month loan and a smaller down payment, you're signing up to hand over nearly ten thousand dollars on average in interest alone. Unfortunately, stretching out the term to be able to swallow a higher-priced vehicle guarantees you'll be building equity at a snail's pace, leaving you highly vulnerable to falling underwater when it's time to trade in."The pain isn't limited to new car buyers, as used vehicle purchases during Q2 also showed some startling trends. Used vehicle payments over $1000 a month reached a record 6.2 percent in Q2, with the average used vehicle loan amount now cresting $30,414. That figure is up from $29,080 one year ago. Cars are, quite simply, getting harder for the average American to afford across the board.You Might Also LikeIf You Can Only Own One Car, Make It One of TheseThese Are the Most Popular Cars by State