A record one in four new-car buyers is now taking a seven-year loan

Monthly payments for new vehicles have climbed to $787, while the average amount financed has reached a record $44,664.

For many buyers, the answer is time. A record 25.5% of financed new-car buyers took loans lasting at least 84 months, or seven years, up from 21.8% a year earlier.

Longer terms can bring down the monthly bill, yet the interest bill continues to grow. The average interest paid over the life of a new-car loan reached $9,938, even as the average auto-loan APR held at 7% for a third consecutive quarter.

Some buyers are already carrying much larger monthly commitments. The share spending more than $1,000 a month on payments rose to 21.2%, from 19.1% at this time last year.

Different measures of the market point to the same pressure. The average monthly new-car payment in 2026 is about $755, compared with $104 in 1971, a 7.3-fold increase over 55 years. From 2020 to 2026, that average rose 29.9%, from $581 to $755 a month.

Another measure puts the average monthly payment for a new vehicle at $765, against $542 for a used vehicle. The average amount financed for a new vehicle is $43,610.

Vehicle prices have remained elevated. The average new-car price was $34,101 in 2026 through July, compared with $3,215 in 1967, a 10.6-fold increase over 59 years.

The average car price was $32,680 in 2022 and stood at $34,101 in 2026.

Light trucks, including pickups, vans and SUVs, cost $48,237 in 2026. That was 41.5% above the average car price, while also remaining above their 2020 level of $40,694.

The average new-vehicle transaction price in the United States was $48,230 in 2024. Total new-vehicle sales grew 5.9% in 2024 compared with 2023.

The payment is only part of the cost of a new car. AAA’s 2025 annual study put the average annual cost of running one at $11,577, or about $964.78 a month.

The sharpest one-year rise in new-car payments came between 2021 and 2022, when they rose by $72 a month, from $599 to $671, as loan amounts and rates increased together.

Buyers who extend a loan can make the purchase fit a monthly budget. The figures show the trade-off: the debt lasts longer, and the lifetime interest cost rises with it.