22.9% of New Car Buyers Opt for 84-Month Loans in Q1, Up from 20.2% Last Year

Loan Terms Extend for New Car Purchases The share of financed new-car purchases involving loans of at least 84 months reached 22.

9% in the first quarter, according to Edmunds. 2% a year prior. Overall, about 23% of car buyers signed a loan for 84 months or longer during the period. A decade ago, the share of car buyers signing loans for 84 months or longer stood at 10%, per Edmunds data.

The average amount financed for new cars in the first quarter was $43,899, compared to $41,473 a year earlier. com reported these trends based on industry analyses. 9% over 84 months, the monthly payment totals $660, according to Bankrate calculations.

Over the full loan life, this arrangement incurs $11,575 in interest. 9% for 60 months results in a monthly payment of $867 and $8,132 in total interest.

Buyer Demographics Shift Over Time The share of new-car buyers with annual income below $100,000 was 37% last year, down from 50% in 2020, according to Cox Automotive.

This decline reflects changes in the buyer base amid rising vehicle costs. Edmunds data underscores the growing reliance on extended financing terms. 9% in the first quarter, per Edmunds. 17% recently, according to Bankrate.

At that rate, a $43,899 loan over 84 months yields a monthly payment of $803 and $23,525 in total interest.

Vehicle Prices Continue Upward Trend The average sticker price on a new car reached $51,456 in March, according to Kelley Blue Book.

Prices have remained above $50,000 for 12 consecutive months as of March. 5% increase from a year earlier. These price levels align with broader inflation measures. S. Bureau of Labor Statistics. com reported on these pricing and inflation figures in its coverage of automotive market data.