New-Vehicle Affordability Reverses Course in June as Higher Prices and Loan Rates Outpace Income Growth
New-vehicle affordability declined slightly in June, as higher prices and higher interest rates outweighed strong income growth. The estimated average auto loan rate increased to 9.58%, up from 9.53% in May and mostly flat year over year. The average vehicle…
Price Drop and Income Growth Improve New-Vehicle Affordability in May
New-vehicle affordability improved in May, as lower transaction prices, higher incentives, and strong income growth more than offset a slight increase in interest rates. The estimated average new-vehicle auto loan rate increased by 8 basis points to 9.53%, which was…
New-Vehicle Affordability Declines in April on Higher Prices, Lower Incentives
New-vehicle affordability declined slightly in April, as higher prices, rising interest rates, and lower incentives outweighed strong income growth. The estimated average auto loan rate increased by 9 basis points to 9.45% in April, while the Kelley Blue Book average…
With Incomes Rising, New-Vehicle Affordability Continues to Improve in March
New-vehicle affordability improved in March for the fifth straight month, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index, driven largely by strong income growth, steady prices and interest rates, and increased incentives, all of which boosted buyers’ purchasing power.…
New-Vehicle Affordability Improves for Second Straight Month on Strong Income Growth
New-vehicle affordability in the U.S. improved slightly in February, as strong income growth and improving incentives more than offset higher transaction prices and little changed interest rates. The February data was gathered before the impact of a war in the…
New-Vehicle Affordability Improves in January on Higher Income, Lower Loan Rates
New-vehicle affordability improved in January, according to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index, reaching the best level since March 2025 when tariffs were first announced. Lower transaction prices and lower interest rates more than offset reduced incentives. The…
Wage Gains Offset Higher Prices as New-Vehicle Affordability Holds Steady in December
New-vehicle affordability was essentially unchanged in December, according to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Strong wage growth offset higher interest rates and higher transaction prices. The estimated average auto loan rate was down 31 basis points year…
Wage Gains Boost New-Vehicle Affordability in November Despite Higher Rates
New-vehicle affordability improved in November after three consecutive months of decline. Strong wage growth was the difference-maker, more than offsetting higher interest rates and slightly higher transaction prices. The estimated average auto loan rate was down 55 basis points year…
New-Vehicle Affordability Slips Again in October as Incentives Drop
New-vehicle affordability edged down in October, according to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index, declining for the third consecutive month. New-vehicle affordability hit its lowest point since December 2024 in September and didn’t improve in October. Automakers cut…