Overview

• Loans of 84 months or longer reached a record 22.4% of new-vehicle financing in Q2 2025, according to Edmunds data cited in new reports.
• Six-year terms now dominate at 36.1% of loans, seven-year loans account for 21.6%, and eight-year loans remain under 1% but are increasing.
• Negative equity affected 26.6% of Q2 trade-ins, with customers owing an average of $6,754, making it harder to swap vehicles without rolling debt.
• Edmunds estimates the average interest paid on an 84-month loan at $15,460, about $4,600 more than a typical five-year loan.
• Dealers promote longer terms to lower monthly payments and move higher-priced vehicles, while experts warn about depreciation, out-of-warranty repairs, and the risk of being upside down.