(NewsNation) — New cars have effectively become luxury goods, and a record share of buyers are opting into $1,000-a-month car payments.

Last quarter, one in five new car buyers (20.3%) who financed their purchases committed to monthly payments of $1,000 or more — the highest share on record, according to new data from Edmunds.

The total amount buyers financed also hit an all-time high, averaging $43,759, more than $10,000 above the pre-pandemic norm at the end of 2019.

“The record-setting figures we’re seeing reflect the financial strain many buyers faced throughout the year,” Ivan Drury, Edmunds’ director of insights, said in a statement.

Car shoppers are increasingly relying on longer loan terms rather than larger down payments to manage affordability. Loans of 84 months or longer accounted for 20.8% of financed new-car purchases last quarter, up from 17.9% a year earlier. Meanwhile, average down payments fell by more than $600 to $6,228 over the same period.

Edmunds’ data shows the four-figure payment trend isn’t limited to new vehicles. A record 6.3% of used-car buyers took on monthly payments of $1,000 or more last quarter.

One potential relief for buyers is interest rates, which have eased modestly. The average annual APR for new vehicle purchases dipped to 6.7% in the fourth quarter, down from 7% the previous period, according to Edmunds.

That’s still near historic highs, though rates could edge lower in 2026.

“New-vehicle prices remain high but are beginning to stabilize; lower interest rates could offer some relief for both new- and used-vehicle shoppers,” Drury said. “An increase in off-lease returns is expected to provide more affordable alternatives in the used market.”