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 incentives significantly, offsetting strong income growth and slightly lower transaction prices, so cars actually became less affordable.

The estimated average auto loan rate was nearly unchanged, inching up 2 basis points to 9.49%1, which was 83 basis points lower than a year earlier. The average new-vehicle price decreased 0.4% for the month following a record high, according to Kelley Blue Book’s October average transaction price report. Income growth remained strong at 3.5% year over year.

The typical monthly payment for a new vehicle increased 0.4% to $766, up 1.2% year over year and reaching the highest level in sixteen months. The number of weeks of income needed to purchase the average new vehicle increased to 36.43 weeks from 36.40 weeks. The average monthly payment peaked at $795 in December 2022.

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

Weeks of Income Needed to Purchase a New Light Vehicle


New-vehicle affordability in October was better than a year ago, even though interest rates remained elevated and incentives were lower. In October 2024, it took 37.2 weeks of median income to purchase the average new vehicle, 2% higher year over year. Income was 3.5% higher than the prior October, while transaction prices increased 2% from last 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 Dec. 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.