Share of 7-year car loans grows as buyers 'work harder to make the numbers fit,' expert says

For a growing share of car buyers, paying for a vehicle is a seven-year commitment.

A record 22.9% of financed new-car purchases in the first quarter involved loans of at least 84 months, according to new data from car shopping and research site Edmunds. That’s up from 21.2% a year prior. A decade ago, it was 10%.

The average amount financed for new cars also reached a record high, climbing to $43,899 in the first quarter, up from $41,473 a year earlier, Edmunds data shows.

As the amount continues to climb, “consumers are having to work harder to make the numbers fit — a clear sign of how strained affordability has become,” said Jessica Caldwell, Edmunds’ head of insights.

The average sticker price on a new car in March reached $51,456, marking the 12th consecutive month that it’s been above $50,000, according to Kelley Blue Book. The average transaction price after incentives was $49,275, up 3.5% from a year earlier.