New car down payments hit 4-year low as buyers struggle with affordability challenges

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New Ford vehicles for sale at a Ford dealership in Thousand Oaks, California. (Photographer: Jill Connelly/Bloomberg via Getty Images) Expand

Car shoppers are facing affordability challenges in the market for new vehicles despite average down payments dipping to nearly the lowest level in four years, according to a new report.

An analysis by Edmunds found that the average down payment for new car purchases fell to $6,020 in the third quarter of 2025. That's the lowest level since the fourth quarter of 2021 and is down from $6,433 in the second quarter of 2025 and $6,619 in the third quarter of 2024 – but the affordability of new vehicles remains a challenge for consumers.

The share of car buyers with monthly payments exceeding $1,000 remained persistently high, account