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 over year but increased 7 basis points for the month to 9.56%1. The average new-vehicle price increased 0.1% for the month to $49,814, according to Kelley Blue Book’s November average transaction price report. Income growth remained strong at 3.5% year over year.

The typical monthly payment was up 1.2% year over year but essentially unchanged for the month at $776, near the 2025 high but still below the December 2022 peak of $795. The number of weeks of median income needed to purchase the average new vehicle fell to 36.3 from 36.4 in October.

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

Weeks of Income Needed to Purchase a New Light Vehicle


New-vehicle affordability in November was better than a year ago because higher wages are helping car buyers offset the negatives of modestly higher prices and increasing interest rates. Incentives were 17% lower than a year ago, yet affordability still improved. The improvement in affordability is a sign that macroeconomic tailwinds are outweighing the effects of reduced manufacturers’ support. In November 2024, an average new vehicle cost 37.1 weeks of median income – about three-quarters of a week less than the previous year.

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 Jan. 15, 2026.

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.