Santa Monica, Calif., Jan. 05, 2026 (GLOBE NEWSWIRE) -- New-vehicle financing trends in Q4 2025 capped a year marked by persistent affordability challenges, with several key auto financing metrics hitting new records, according to the latest analysis from Edmunds.

Edmunds’ Q4 2025 data on financed vehicle purchases shows: 

• More car shoppers are opting into $1,000+ monthly payments than ever before. The share of new-car buyers committing to monthly payments of $1,000 or more reached a record high of 20.3% of all financed new-vehicle purchases in Q4 2025, up from 19.1% in Q3 2025 and 18.9% in Q4 2024. Used-vehicle buyers also reached a new record, with 6.3% committing to $1,000+ monthly payments during the quarter, compared to 6.1% in Q3 2025 and 5.4% in Q4 2024.
• Monthly payments for new vehicles climbed to the highest levels ever recorded. The average monthly payment on financed new-vehicle purchases reached a new all-time high of $772 in Q4 2025, compared to $754 in Q3 2025 and $754 in Q4 2024. 
• Shoppers financed more money than ever to buy new vehicles. The average amount financed for new-vehicle purchases climbed to a record high of $43,759 in Q4 2025, compared to $42,647 in Q3 2025 and $42,113 in Q4 2024. 
• Longer loan terms continued to play a major role in managing new-car financing costs. Edmunds data shows that 84-month or longer loans made up 20.8% of financed new-car purchases in Q4 2025. While this figure was slightly down from 22% in Q3 2025, Edmunds analysts note that it remained well above the 17.9% share seen in Q4 2024, underscoring consumers’ continued reliance on extended loan terms as an affordability tool.
• Interest rates eased modestly but remained elevated for new-car shoppers. The average annual percentage rate (APR) for new-vehicle purchases dipped slightly to 6.7% in Q4 2025, down from 7% in Q3 2025 and 6.8% from Q4 2024 but still near historically high levels. Edmunds analysts note that promotional financing continued to be limited in Q4: Just 3.1% of new-vehicle loans carried a 0% rate, down from 3.3% in Q3 2025 but up slightly from 2.4% in Q4 2024. 

“Auto financing trends in the fourth quarter underscored just how challenging 2025 was for  car shoppers,” said Ivan Drury, Edmunds’ director of insights. “Faced with persistently high vehicle prices and borrowing costs, many consumers were forced to adapt by financing larger amounts, stretching loan terms and, increasingly, taking on four-figure monthly payments. The record-setting figures we’re seeing reflect the financial strain many buyers faced throughout the year.”

Looking ahead, Drury weighs in on how these dynamics could shape the auto market in 2026.

“Entering 2026, many of the affordability pressures that defined 2025 are still in place, including elevated new-vehicle prices and ongoing economic uncertainty,” said Drury. “That said, there are early signs of rebalancing ahead. New-vehicle prices remain high but are beginning to stabilize, lower interest rates could offer some relief for both new- and used-vehicle shoppers, and an increase in off-lease returns is expected to provide more affordable alternatives in the used market.”

For a deeper look at the headwinds and tailwinds expected to shape the auto market in the year ahead, see Edmunds’ recent analysis on the trends defining the 2026 car market.

Quarterly New-Car Finance Data
(Averages)

Quarterly Used-Car Finance Data
(Averages)

About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Newsweek, Fortune, Great Place to Work and Built In, Edmunds is based in Santa Monica, California. Follow us on TikTok, Twitter, Facebook and Instagram.

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Talia James-Armand
Edmunds
310-491-8738
pr@edmunds.com