Overview

• The administration’s 25% levies on imported vehicles and parts have pushed new-car prices, used-vehicle values and insurance costs higher.
• In the second quarter of 2025, average loan terms stretched to 69.8 months as buyers sought to reduce monthly outlays by spreading payments over longer periods.
• Average financed amounts rose to $42,388 while down payments dipped to $6,433, contributing to a jump in mean monthly bills to $756.
• Twenty percent of new-car purchasers now shoulder payments exceeding $1,000, raising risks of being underwater and escalating upkeep expenses.
• The omnibus spending bill enacted in July allows up to $10,000 per year in interest deductions on loans for qualifying U.S.-assembled vehicles through 2028.