Americans are paying more for their cars — and taking longer to do it.
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According to Edmunds, new car buyers are now financing an average of $44,664. That is the highest amount ever recorded. Seven years ago, the average was just over $33,000 — an increase of 33%.
For used cars, buyers are borrowing an average of $30,703. While that is not a record — that came in 2022 — it is still up 36% over the past seven years.
As loan amounts grow, so do loan lengths. More than 1 in 4 auto loans now runs 84 months or longer. That is seven years. For the average Arizona driver, that means putting more than 91,000 miles on a car before making the final payment.
When factoring in a 7% interest rate, plus tax, title, and registration, the average monthly payment hits $787 — another record high.
Sticker prices are a major driver of the trend. Cox Automotive reports the average new car now sells for more than $50,000, a price point that has held for roughly three years.
Prices jumped 20% during the pandemic but have held steady since then and are not climbing again.
Cheaper options do exist. A compact car comes in at just under $28,000 out the door. The most popular vehicle class, the compact crossover, averages $37,000.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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