New Car Buyers Want Longer Financing Terms Despite High Monthly Payments.

Longer and Higher - A couple of months ago, we wrote that 2026 would be a record year for an emerging trend in car buying. Our previous report showed that more new car buyers are stretching their financing terms up to 84 months. More data has since emerged to support that, along with other numbers showing a major shift in car-buying attitudes.

Edmunds released a study that says 1 in 4 new car buyers are financing their cars for 84 months or longer. In Q3 of 2026, 84-month or longer terms accounted for a record 25.5% of all financed vehicle purchases. This is up from Q2’s 23.9% and a significant bump from last year’s Q3 figure of 21.8%.

Beyond longer terms, car buyers are also paying more, with the average finance amount for new cars reaching $44,664. This has also translated into much higher monthly premiums; the new average monthly payment is $787, up $10 from last quarter’s average.
One key data point shows that more car buyers are also taking on $1,000-plus monthly payments at higher rates. In Q3 2026, 21.2% of total financed car sales had loan payments of $1,000 or more. The study says these trends together also significantly raise the average total interest paid over the life of a financed vehicle. The new average is a whopping $9,938 in Q3 2026.

Resiliency - According to Edmunds‘ head of insights, Jessica Caldwell, the data shows that consumers are showing newfound resiliency when it comes to car buying. “Even as monthly payments hit record highs, loan terms stretch to historic lengths, and four-figure monthly payments become more common, buyer demand for new vehicles hasn’t dropped off. Instead of sitting on the sidelines, consumers are adapting: They’re allocating more of their household budgets to their vehicles, stretching out their loan terms, and becoming more proactive about shopping around for financing to find ways to make the numbers work, Caldwell added.”
Caldwell also warned car buyers that longer financing terms don’t automatically mean the car makes sense for you. She pointed out that taking out a $45,000 loan with over $10,000 in interest is a significant financial commitment that should be carefully considered.

Source: Autoblog

The impact of gas prices and the demand for more fuel-efficient vehicles is hitting the wholesale market, with vehicles averaging less than 34 miles per gallon dropping in price. Driving the news: In the Q3 Manheim Used Vehicle Index Report, Jonathan Gregory, Senior Director of Economic and Industry Insights, shared a breakdown of wholesale vehicle pricing by miles per gallon. The most fuel-efficient vehicles, which average more than 40 miles per gallon and are almost exclusively hybrids, have seen a 9.9% increase in price since January.

Source: Car Dealership Guy

Honda R&D Co., Ltd., Taisei Corporation and Taisei Rotec Corporation are jointly developing wireless charging technology for EVs, and the companies plan to begin public-road demonstration testing in Japan’s 2027 fiscal year, which starts April 1, 2027. The companies have developed the underlying technology for a magnetic-coupling wireless power-transfer system that crews would embed in roads so EVs can charge while driving. Honda said the system suits vehicles ranging from passenger EVs to large commercial trucks, and the company sees logistics as the most promising early use. Later testing will verify power transfer of up to 150 kW for large commercial vehicles, along with the reliability of charging at high speeds. If the technology succeeds, Honda said it could reduce how often drivers must stop at charging stations.

Source: CBT News

General Motors CEO Mary Barra said Monday that the automaker remains on track to introduce “eyes-off, hands-off” driving technology by 2028. GM announced last October that it plans to launch its next-generation driver-assistance system in the electric Cadillac Escalade IQ in 2028 before expanding to other models. Unlike the company’s existing Super Cruise system, which allows drivers to take their hands off the wheel but requires them to remain attentive, the new technology is designed to let drivers take their eyes off the road under certain conditions.

Source: CNBC

According to recent Kelley Blue Book estimates, electric vehicle sales climbed 7.7% from the second quarter, making Q3 the strongest quarter since the record-setting Q3 of 2025. However, sales remained down 38.6% from a year earlier because consumers rushed to buy EVs ahead of the expiring federal incentives during that record quarter. Market share followed the same upward trend, with EVs capturing about 6.5% of new-vehicle sales in Q3, up from 5.8% in Q2 and the highest share since Q3 2025, when EVs topped 10% of the market for the first time. Counting traditional hybrids and plug-in models, nearly 25% of new vehicles sold in Q3 carried some form of electrification.

Source: CBT News

General Motors was perhaps a bit hasty in canceling many of its green car programs, though its actions reflected industry wisdom at the time. The company offers no hybrids in 2026, other than expensive, low-volume Chevrolet Corvette performance cars. And these days, with gas prices hovering around $4.50 a gallon, fuel sippers, not big, gas-guzzling trucks and SUVs, are what consumers want. A Consumer Reports survey of 2,124 American adults in October found that two-thirds (68 percent) of people who plan to buy or lease a new car say that fuel efficiency is either “very” or “extremely” important to their decision. And they’re not just talking about buying hybrids.

Source: Autoweek

Unlike heated seats, voice commands, or adaptive cruise control, these six features seem pointless, and some of them are just annoyances.

1. Auto Start-Stop
2. Gesture Controls
3. Touchscreen – only heater and audio controls
4. Built-in Native Navigation
5. CVT paddle shifters
6. In-Car social media and gaming

Volvo Cars’ highly anticipated EX60 electric crossover is mired in a production crisis that’s likely to leave U.S. dealerships without “significant volume” deep into 2027. The Swedish automaker had expected to sell about 7,000 EX60s in the U.S. this year, dealers told Automotive News in January. Instead, two manufacturing problems have the company on track to deliver a fraction of that volume, according to a person with knowledge of the situation.

Source: Automotive News

Several Cadillac EVs caught fire at a dealership in Fort Worth, Texas last week, leaving a total of eight electric vehicles damaged, six of which were completely destroyed. According to local reports, the incident occurred on Friday, October 9th, at Frank Kent Cadillac, with firefighters spending hours battling the blaze after it spread between several parked vehicles. Video captured at the scene shows extensive damage, with most, if not all, of the affected vehicles appearing to be units of the Cadillac Escalade IQ, which is equipped with a massive 205-kWh battery pack.

Firefighters believe the blaze first started in one vehicle before spreading to several others parked nearby. Of the eight Cadillac EVs that were affected, six were declared total losses, while the remaining two sustained relatively minor damage. Video coverage shows several heavily damaged Cadillac SUVs parked close together, with their body panels scorched and portions of their roofs and rear sections burned away. At least two of the vehicles have extensive fire damage, leaving their metal structures exposed and their windows missing.

Several other vehicles are seen covered by large black fire blankets, which firefighters deployed to help contain the flames and prevent the fire from spreading even further. Smoke and steam can be seen rising from the damaged vehicles as emergency crews continue to work.
One firefighter explained that electric vehicle fires can be particularly difficult to extinguish due to the high temperatures associated with the burning battery packs. Firefighters were reportedly at the scene for more than 17 hours before the fire was fully extinguished. “With these EV fires, they burn at least twice as hot as the typical gas or diesel fires,” said a firefighter at the scene.

Fortunately, no injuries were reported in connection with the incident. Meanwhile, investigators are still working to determine what initially caused the fire. At this time, there is no confirmed explanation for how the blaze started.

Source: GM Authority

FedEx has ordered 2,000 electric trucks from California-based manufacturer, Harbinger, in a deal worth more than US$300 million, Some are bound for Canadian roads by the end of 2027.

Harbinger says the vehicles will serve FedEx pickup and delivery operations in the United States and Canada. The order includes a mix of models from Harbinger’s lineup. The Canadian dealer for Harbinger, Kaizen Automotive Group (a Calgary based automotive group), will support this country’s portion of the fleet and rollout. Harbinger plans to build and deliver all 2,000 vehicles in roughly 18 months. 

In an email to Electric Autonomy, a spokesperson for FedEx said the “specific deployment plans, including the number of vehicles that will operate in Canada, are still being finalized.”

Significant Fuel Savings

The trucks will serve as “one-for-one replacements” for conventional vehicles, the manufacturer said. Harbinger estimates each vehicle will save about US$20,000 a year in fuel compared with the diesel truck it replaces, the 2,000 vehicles will save US$800 million in fuel costs over a 20-year service life and, based on current published data from the U.S. Department of Energy, will avoid more than 1.5 million tonnes of CO2 emissions over their operating lives. “The transportation industry is undergoing a fundamental transformation, and electrification is set to play a pivotal role in the future of commercial fleets,” said Vinay D’Souza, senior vice-president of global assets and infrastructure for FedEx, in a statement. “This order with Harbinger helps us advance that transition, allowing us to build a more modern, efficient and intelligent fleet that meets the evolving needs of our customers, our team members, and our global operations.”

A History of Electrification

Here in Canada, FedEx first introduced a fleet of cargo e-bikes in Toronto in 2020.

In 2021, FedEx pledged to convert its pickup and delivery fleet to all-electric by 2040.
In July 2022, FedEx Ground subcontractor, Cutone Transport, took delivery of Xos electric step vans in the Toronto area.

In June 2023, the company unveiled its first 50 BrightDrop Zevo 600 vans at its Toronto depot. Most operate in Toronto, with others in Montreal and Surrey, B.C.

In December 2025, FedEx co-led Harbinger’s US$160-million Series C funding round and placed a first order for 53 Class 5 and Class 6 electric platforms. Harbinger had begun selling in Canada earlier in October 2025.

Source: Electric Autonomy