Car Loans Hit Records in October: $44,664 Financed on Average, One in Four Buyers Stretching to 84 Months or More

Car borrowing hit new record highs in October 2026, according to Edmunds figures cited in reports this month. The amount financed for a new vehicle reached $44,664, and the average term is 70 months. More than one in four new-car buyers are now financing vehicles for 84 months or longer — seven years or more to pay off a depreciating asset.

Used cars tell an even harsher story. The average used car financed is $30,703, also over 70 months, but with an average down payment of just $3,865 and an annual percentage rate of 10.6%, versus 7% for new cars. At $582 a month across 70 months, a used-car buyer repays about $40,970 on $30,703 borrowed. Among used-vehicle buyers, 6.5% took on $1,000-plus monthly payments — also an all-time high.

The sting in the tail is negative equity. Buyers who financed at 2022's peak prices are starting to come back to trade in, and they are bringing thousands of dollars in old debt with them. That debt does not disappear at trade-in: the dealer taking the old car has to pay it off, and if the car is not worth more than the loan, the buyer covers the gap — often by rolling it into the next loan. With cheap cars largely gone from the market, buyers are borrowing more for longer just to stay mobile, and the monthly payment has quietly become the real price of the car.