A record 22.4% of new car buyers already choose 7-year car loans to manage monthly payments

Car prices do not decrease and are neither interest rates. To afford a new car, many buyers register for longer loans to make the monthly payments feel more controlled.

Edmunds Q2 2025 Report It shows several disturbing new entries in car financing. 22.4% of buyers financing a new vehicle selected an 84-month or longer loan period, compared to 20.4% in Q1 2025 and only 17.6% a year earlier.

According to Edmonds, the average amount funded for New vehicles He climbed to $ 42,388 through Q2, the highest of all time, and nearly 20% of buyers agreed to monthly payments of $ 1,000 or more. To reduce advance costs, buyers also put in less money. The average payment for an advance payment was $ 6,433 for Q2, which is a lower than $ 6,579 at the same time a year ago.

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Although you take up seven years Car loan It can make monthly payments feel more fulfilled, this comes with long-term costs. In general, you will pay more interest, the car will be depreciated and there is a greater risk of paying more than a car worth it -especially if you trade it at the beginning or the vehicle loses value more than expected.

If you are considering a long-term loan to make payments more accessible, make sure that total interest costs are not something you regret later. You will also want to consider maintaining cars, as the longer property usually means paying more for repairs. And remember that while longer loans can make the property of cars look more accessible in the short term, they often increase your true price of property as a whole.

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Engaging a seven -year loan usually means that you will pay more interest in the life of the loan and stay Upside down Longer. If you want a more monthly account without the long loan, consider these alternatives:

• Buy lightly used: A car, which is one to three years old, has already taken the largest blow, so the price – and your payment – will usually be more.

• Put more money: The greater advance payment reduces the amount you occupy, which means less monthly payments and less interest paid during the life of the loan.

• Shop for better prices: Get pre-approved in a credit union or bank and compare at least two to three offers to get the best deal. If you have less than the ideal credit rating, correct the credit report errors or use a joint signature to maximize your chances of getting a more accessible rate.