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 transaction price (ATP) increased 0.7% to $49,461. Meanwhile, sales incentives declined. With household income growth at 0.3% month over month, buying power declined in April. The Cox Automotive/Moody’s Analytics Vehicle Affordability Index increased 1% for the month, to 35.2.

The typical monthly payment for a new vehicle rose 1.3% month over month to $757.  The number of median weeks of income needed to purchase the average new vehicle increased to 35.2, up from a revised lower 34.9 in March. The average monthly payment peaked at $795 in December 2022. Current payments are lower by 4.9% compared to the all-time high and, thanks in part to strong income growth, the index is lower by 16.9%.

New-vehicle affordability in April was better than a year ago even though prices were 1.8% higher. In April, auto loan interest rates were lower year over year by 21 basis points, and incentives were higher by 3.5%. Household incomes were also higher by a strong 4%. The result: While monthly payments in April were higher year over year by 1%, the estimated number of weeks of median income needed to purchase the average new vehicle was lower by 2.8%.

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

View historical Cox Automotive / Moody’s Analytics Vehicle Affordability Index reports.

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