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For many consumers, buying a car increasingly comes with a hefty monthly bill.
The share of new-car buyers who pay $1,000 or more per month for their auto loans rose to a record 20.3% of all new vehicle purchases financed in the fourth quarter of 2025, according to new data from car website Edmunds.
That’s up from 19.1% in the third quarter of 2025 and 18.9% in the fourth quarter of 2024.
Used-car buyers aren’t exempt, either, with 6.3% facing monthly auto loan payments of $1,000-plus as of the fourth quarter. That’s up from 6.1% in the third quarter of 2025 and 5.4% in the fourth quarter of 2024.
Even car purchasers who avoid four-figure monthly payments are paying more, Edmunds found. The average monthly payment on a new vehicle climbed to an all-time high of $772 per month in the fourth quarter of 2025, up from $754 in the third quarter.
The data points to a K-shaped economy that has divided wealthy and lower-income consumers, according to Ivan Drury, director of insights at Edmunds.
Wealthy investors, who have benefited from rising stock values and home prices, are more likely to spend, while low-income consumers have been harder hit by prolonged cost-of-living increases affecting the prices for groceries and other essentials.
Car loan payments top $1,000 for more drivers
