New-vehicle affordability was stable in August, according to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index.

“Higher prices and declining incentives reduced buying power in August, but income growth offset the impact to the index,” said Cox Automotive Chief Economist Jonathan Smoke. “As a result, new-vehicle affordability did not change month over month.”

The estimated average auto loan rate increased by 1 basis point to 9.64%1, which was lower year over year by 102 basis points. The average new-vehicle price increased 0.5% for the month to the highest level in 2025. Income growth remained strong at 3.4% year over year.

The typical payment rose 0.6% to $752, marking the highest monthly amount in 2025, despite being 0.2% lower than last year. The number of median weeks of income needed to purchase the average new vehicle was steady at 36.8 weeks. The average monthly payment peaked at $795 in December 2022.

Cox Automotive/Moody’s Analytics
Vehicle Affordability Index
August 2025

Weeks of Income Needed to Purchase a New Light Vehicle

New-vehicle affordability in August was better than a year ago, when it took 38.1 weeks of media income to purchase the average new vehicle, which was 3.3% higher. A year ago, prices were 2.6% lower, but interest rates were higher. Incomes and incentives were also lower in August 2024.

Click here for the full methodology for the Cox Automotive/Moody’s Analytics Vehicle Affordability Index.

The next update of the Cox Automotive/Moody’s Analytics Vehicle Affordability Index will be published on Oct. 15, 2025.

1 The index input of the average interest rate paid by consumers is calculated to reflect a 72-month, fixed-rate loan. For the latest Dealertrack estimated volume-weighted average new loan rate, visit the Auto Market Snapshot.

The Cox Automotive/Moody’s Analytics Vehicle Affordability Index (VAI) is updated monthly using the latest data from government and industry sources, including key pricing data from Kelley Blue Book, a Cox Automotive brand. This important industry measure will be released at mid-month to indicate if the prices paid for new vehicles are moving out of consumers’ financial reach or becoming more affordable over time.