More new car buyers resort to loan financing conditions for 84 months

Use more car purchases for seven -year loans to finance new vehicles in the first quarter, where they continued to conflict with the ability to withstand costs, according to A recent report.

Edmunds said last week that he had found 84 months loans, representing 19.8 % of new cars financing in the first three months of 2025.

The percentage of loans for a period of seven years for New vehicles In the first quarter, four degrees Celsius jumped on an annual basis, according to the report. Compared to the first three months of 2019, this new auto financing increased 6.4 points.

Edmonds also pointed to 19.8 % of Q1 as an “ever rising” for 84 months on new vehicles.

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“The auto financing market has shown signs of stability in the first quarter, but this stability does not mean that the ability to bear costs may improve,” Edmonds President Jessica Caldwell said in a press statement. “When one in five buyers get new cars on seven -year loans, the number of consumers is clear It is still a financial extension. Even with relatively prices, the continuous dependence on the extended conditions and high monthly payments reveal the difficulty of buying cars. ”

In the first quarter, 10.2 % of those who funded new vehicles on four years or less loans agreed, which Edmonds is associated with “well -qualified buyers who benefit from incentives associated with shorter terms.”

The report also noted a decrease on an annual basis in new vehicle financing loans with 60 to 75 months in the first quarter, as it said that it indicates “a broader shift as consumers extend increasingly or limit the terms of loans to achieve their financial goals.” Its share increased from 69.7 % in the first quarter 2024 to 67.4 %.

The average loan period for new vehicles was 69.5 months in the first quarter, with new car buyers usually on the hook for a monthly payment of $ 741, according to Edmunds. It was also found that the average annual percentage of new cars was 7.1 %.

For about 17.7 % of the new car buyers in the first quarter, they faced monthly payments of more than $ 1,000, Edmunds said.

“There is a danger” that the car tariff in the Trump administration said, “will add fuel to the fire” to issues of the ability to withstand the costs of car buyers, which leads to interruption that can push vehicles to more reach for many shoppers. ”

President Donald Trump The declared definitions were announced on imported passengers, light trucks and some major auto parts at the end of last month, which amounted to 25 %. The tax targeting vehicles and trucks entered into force on April 3, on the same day that Edmonds issued its report.

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Some economists and financial analysts said that the Trump vehicle tariff and auto parts could raise prices Vehicles Thousands of dollars.

While the vehicle tariffs were unveiled in late March, Trump indicated that he wanted to do this so that people could, as such a proposal mentioned earlier that month during his joint speech to Congress.

According to CaldWell, it can “provide real comfort to consumers, especially with the total paid benefits on a new loan of vehicles that can be used in the home renewal project or leave.”

“But there are still many questions that were not answered from how to define” America “on how to implement this and who will qualify.” “Until these details are clarified, it is difficult to measure the impact of a policy like this on the market.”

Americans with new vehicles funded more than $ 9,231 on average interest in the first quarter, according to Edmunds.

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The shopping guide in late March is preceding that the United States will witness a total of 3.8 million new cars sales in the first quarter.

COX Automotive said on Monday that its initial estimate of the average price of transactions for new vehicles amounted to $ 47,448 in March.