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High car-loan payments are rising, hitting both new and used buyers
One in five new-vehicle buyers in Q2 2026 is paying $1,000 or more per month, with the share of 0% financing down to 1.2% since the pandemic.
Yahoo Finance highlights concerns that auto debt is increasingly weighing on Americans’ finances as new-car prices and borrowing costs rise.
It cites data from the Washington Post that the average financed new-vehicle purchase is $44,156, a record high, and notes that Edmunds data show one in five drivers who bought a new vehicle in Q2 2026 are now paying $1,000 or more per month on their car loans.
For used vehicles, the outlet says the average amount financed is $30,414, and that 6.3% of used-car buyers are paying $1,000 or more per month. It also points to the decline in promotional financing, saying 0% financing has fallen from 24.2% of buyers during the pandemic to 1.2% more recently.
Yahoo Finance further reports that average interest rates are at elevated levels, with 7% for new vehicles and 10.5% for used cars, and that many borrowers stretch loan terms up to 84 months to keep payments manageable.