Edmunds analysts say 84-month loans accounted for 19.8% of U.S. new vehicle financing in the first quarter of 2025, an all-time high and a 25.3% increase from the year-ago quarter. Six years ago, in Q1 2019, 84-month terms accounted for 13.4% of new vehicle loans.

The Q1 report finds the share of car buyers making $1,000-plus payments held steady at 17.7% and the average amount financed increased by 2.6% to $41,473. Zero percent financing deals hit a record low of 1%, down from 3% in Q1 2024, as interest rates reached “historically high” levels.

“The auto finance market showed signs of steadiness in Q1, but that stability doesn’t mean affordability has improved,” writes Edmunds Head of Insights Jessica Caldwell in a release. “When one in five new-car buyers are taking on seven-year loans, it’s clear how many consumers are still financially stretched. Even with rates holding relatively flat, the continued reliance on extended terms and high monthly payments reveals how challenging car buying remains. And now, with auto tariffs officially taking effect today, there’s a risk that they will add fuel to the fire — triggering a disruption that could push vehicles even further out of reach for many shoppers.”

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