More than one in five Americans financing a new vehicle are now paying at least $1,000 a month, as auto loan balances and repayment periods continue to climb, according to a new analysis from automotive research firm Edmunds. The share of buyers taking on four-figure monthly payments reached a record 21.2% in the third quarter of 2026, up from 19.1% during the same period last year.

The average monthly payment on a financed new vehicle also reached a record $787 in the third quarter, rising from $777 in the previous quarter and $756 a year earlier. Buyers financed an average of $44,664 for new vehicles, another record that reflects the growing cost of purchasing a car.

Longer loan terms are becoming increasingly common as buyers attempt to manage their monthly bills. Loans lasting at least 84 months accounted for 25.5% of financed new-car purchases in the third quarter, up from 21.8% a year earlier. More than two-thirds of buyers taking on monthly payments of $1,000 or more chose loan terms of at least six years.

The extended repayment periods can make vehicles appear more affordable month to month, but they also leave borrowers paying interest for longer. Total interest over the life of a financed new-car purchase reached an average of $9,938 in the third quarter, up from $9,442 a year earlier. The average annual percentage rate remained at 7%.

High payments are not limited to new vehicles. Edmunds found that 6.5% of used-car buyers also committed to monthly payments of at least $1,000, a record high. The average payment on a financed used vehicle reached $582, while the average amount borrowed climbed to $30,703.

The figures illustrate the pressure facing American consumers as vehicle prices and borrowing costs strain household budgets. Edmunds analysts say buyers are continuing to purchase vehicles but increasingly relying on larger loans and longer repayment periods to make the payments manageable. They warn that shoppers should consider the total cost of financing, not simply whether a monthly payment fits their immediate budget.