Core Insights - Car shoppers are facing significant affordability challenges in the new vehicle market despite a decrease in average down payments to the lowest level in four years [1][2] Down Payment Trends - The average down payment for new car purchases fell to $6,020 in Q3 2025, down from $6,433 in Q2 2025 and $6,619 in Q3 2024, marking the lowest level since Q4 2021 [2] - This trend indicates that buyers are putting less money down and financing more [4] Monthly Payment Challenges - The share of car buyers with monthly payments exceeding $1,000 remained high at 19.1% in Q3 2025, close to the previous quarter's record of 19.3% [3] - For used vehicles, monthly payments over $1,000 reached a record high of 6.1%, up from 5.6% in Q2 2025 [3] Financing and Loan Durations - More than 20% of car buyers financed their purchases with loans of seven years or more, with 22% of new car loans in Q3 2025 being 84 months or longer, slightly down from 22.4% in the previous quarter but up from 18.5% in Q3 2024 [9] - The average amount financed for new vehicle purchases increased to $42,647 in Q3 2025, up from $42,388 in Q2 2025 and $40,713 in Q3 2024 [10] Interest Rates - High interest rates continue to challenge buyers, with the average annual percentage rate (APR) at 7% in Q3 2025, marking the third consecutive quarter at or above this level [11]