Car prices are high, and so are interest rates, leading car buyers to opt for longer loan terms. According to Edmunds Q2 2025 report, 22.4% of buyers are choosing 84-month or longer loans, up from previous years. The average amount financed for new vehicles hit a record high of $42,388 in Q2.

While longer loans may make monthly payments more manageable, they come with long-term costs. Buyers risk paying more in interest, depreciation of the vehicle, and potentially owing more than the car is worth. Consider alternatives like buying lightly used cars, making larger down payments, or shopping around for better loan rates.

Read more at Yahoo Finance: A Record 22.4% Of New-Car Buyers Now Opt For 7-Year Auto Loans To Manage Monthly Payments