New-vehicle financing trends in Q3 2025 continue to underscore the affordability challenges facing car shoppers, according to the latest analysis from Edmunds.
Edmunds’ Q3 2025 data on financed vehicle purchases shows:
“In Q3, affordability in the new-car market remained stretched, with buyers putting less money down, financing more and relying on longer terms to keep monthly costs in check,” said Jessica Caldwell, Edmunds’ head of insights. “But compared to the near-new market, where inventory has been constrained by lean pandemic-era sales and reduced leasing activity, new vehicles seem to have emerged as the more compelling option.
“With the potential for lower APRs and tariff-related price increases yet to materialize in any meaningful way, shopping for a new vehicle may have felt like the smarter play in Q3 — and could have given the new car market a modest boost.”
Edmunds analysts note that the model year sell-down is well underway, with 2026MY vehicles accounting for roughly 38% of on-lot inventory at the end of Q3.
However, average interest rates and discounts between incoming and outgoing model years were similar: the average APR was 6.9% for 2025MY compared to 7.1% for 2026MY, and the average discount from MSRP was $2,119 for 2025MY compared to $1,431 for 2026MY.
Quarterly New-Car Finance Data (Averages)
| 2025 Q3 | 2024 Q3 | 2025 Q2 | |
| Term (Months) | 70.1 | 68.8 | 69.8 |
| Monthly Payment | $754 | $736 | $756 |
| Amount Financed | $42,647 | $40,713 | $42,388 |
| APR (%) | 7.0 | 7.1 | 7.2 |
| Down Payment | $6,020 | $6,619 | $6,433 |
Quarterly Used-Car Finance Data (Averages)
| 2025 Q3 | 2024 Q3 | 2025 Q2 | |
| Term (Months) | 69.9 | 69.5 | 69.7 |
| Monthly Payment | $565 | $548 | $559 |
| Amount Financed | $29,530 | $28,097 | $29,080 |
| APR (%) | 10.8 | 11.3 | 10.9 |
| Down Payment | $3,976 | $4,165 | $4,092 |