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Record Car Payments Surge as Financing Terms Extend to 84 Months

1/19/2026

24 3 Full Breakdown

Summary

Story summary

In Q4 2025, over 20% of new car purchases involved 84-month financing, driven by high prices and rates.
This trend generated record monthly payments, with 20.3% of buyers committing to payments over $1,000.
The average new car price rose to $50,326.
For instance, financing a 2026 Toyota RAV4 with an 84-month loan at 6.51% APR results in $11,629.45 in interest, raising the total cost to $43,529.

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Story summary

In Q4 2025, over 20% of new car purchases involved 84-month financing, driven by high prices and rates.
This trend generated record monthly payments, with 20.3% of buyers committing to payments over $1,000.
The average new car price rose to $50,326.
For instance, financing a 2026 Toyota RAV4 with an 84-month loan at 6.51% APR results in $11,629.45 in interest, raising the total cost to $43,529.