New-car buyers are switching up how they finance their purchases and setting records along the way.

From extending loan terms to putting less money down up front, buyers are looking for ways to manage the high cost of new vehicles, Edmunds reported.

Financed amounts hit a record high of $43,899 in the first quarter, according to data compiled by the the car shopping platform.  

As the average amount financed rose, so did the average monthly payment, up 4% year-over-year to $773. The number of new-car buyers who ended up with monthly payments of $1,000 or more rose about 11% year-over-year to hit 20%.

Since extended loan terms can help lower monthly costs, 84-month or longer loans made up 23% of financed new-car purchases, which Edmunds said is an all-time high.

"Q1 financing data shows that car buyers are getting creative just to keep their purchases within reach," said company Head of Insights Jessica Caldwell.

"As loan amounts and monthly payments continue to climb to record levels, consumers are having to work harder to make the numbers fit — a clear sign of how strained affordability has become."

Down payment amounts fell to one of the lowest first-quarter levels since 2022, Edmunds reported. The average down payment for new-vehicles purchased was $6,206, down by over $300 year-over-year.

"Right now, consumers are picking their battles when it comes to affordability," said Edmunds Director of Insights Ivan Drury.

"While a larger down payment is typically the better financial move, many buyers simply don't have that flexibility in today's market, especially if it means diverting funds away from more immediate needs.”

However, interest rates were down slightly year-over-year from 7.1% to 6.9%. Promotional financing was limited, with less than 3% of new-vehicle loans carrying a 0% rate.