Auto Shopping Stretches Budgets to New Highs
Q2 patterns break industry records on multiple fronts, Edmunds reports.

The average financed new-vehicle amount in the second quarter was $42,388, a record high and up 2% quarter-over-quarter and 4% year-over-year.
Pexels/Karolina Grabowska
Second-quarter data show auto consumers stretched every which way but loose to squeeze a new car into their budgets.
The quarter, which included the closing gasps of tariff-dodging buys, in fact brought new financing records that would seem to bode ill down the road.
New records, according to Edmunds data, included:
The share of auto loans exceeding 84 months, or seven years, hitting 22% of new-vehicle financing, up from 20% quarter-over-quarter and from about 18% year-over-year.
Monthly payments of more than $1,000 hitting a new high of 19%, up from 18% quarter-over-quarter and year-over-year
Average financed new-vehicle amount of $42,388, a record high and up 2% quarter-over-quarter and 4% year-over-year
Zero-percent financing deals sinking to an all-time low of less than 1%, down from 3% year-over-year
Meanwhile, second-quarter auto shoppers put forward an average down payment of $6,433, down 1% quarter-over-quarter and 2% year-over-year. The average annual percentage rate meanwhile ticked up a tenth of a percentage point from the first quarter to 7.2%.
"It would be easy to assume that tariffs are already reshaping the market, but the reality is that the record-breaking trends we saw in the second quarter are reflective of more consumers opting for maxed-out term lengths despite vehicle prices remaining steady," said Edmunds Director of Insights Ivan Drury.
"It's clear that buyers are pulling the few levers they can control to manage affordability, whether that's by taking on longer loans, financing more, or putting less money down — even if some of those decisions increase their total costs. Consumers are continuously stretching to afford new vehicles in this market, and while tariffs haven't directly driven these Q2 numbers, they're certainly not going to make things any easier for shoppers moving forward."
Though Edmunds didn’t say it, the tariff price avoidance shopping may have moved some consumers to make the wallet-emptying moves, thinking they’d at least avoid any tariff-inflated prices that came later.
But such spending habits don’t come without risk, pointed out Edmunds Consumer Insights Analyst Joseph Yoon.
“While extended loan terms may make a monthly payment more palatable, consumers need to keep in mind the risks associated with a loan extended that far into the future, including increased costs for upkeep down the line and the risk of being underwater on the loan if the car is traded in before it's paid off."
More Showroom

Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →
New Vehicles Down for Most Brands
Healthy May sales cut into inventory as automakers kept a tight reign on supply, though some brands ended the month with excess units on the ground.
Read More →
Auto Prices Ride May Moderation
Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.
Read More →