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 Middle East began to push loan rates higher and consumer sentiment lower.
In February, the estimated average auto loan rate decreased by 1 basis point to 9.51%1 , which was lower year over year by 18 basis points. The average new-vehicle price last month was higher by 3.4% year over year and increased 0.3% for the month, reaching $49,353. On the plus side, income growth remained strong at 3.8% year over year. Higher incomes and higher incentives helped to mitigate the impact of higher prices.
The typical monthly payment in February was essentially flat at $756, down 0.1% from January but still 3.1% higher year over year. The number of median weeks of income needed to purchase the average new vehicle declined to 35.4 weeks from 35.6 weeks in January. The average monthly payment peaked at $795 in December 2022.
Cox Automotive/Moody’s Analytics Vehicle Affordability Index
February 2026
Weeks of Income Needed to Purchase a New Light Vehicle
New-vehicles sales were lower year over year in February, even as new vehicles became more affordable thanks to higher incomes and lower interest rates. Compared to one year ago, the Cox Automotive/Moody’s Analytics Vehicle Affordability Index has improved modestly, moving lower by 0.7%. The affordability index has improved significantly from 2022.
New vehicles, however, continue to be seen by many buyers as “out of reach,” even as household incomes are currently keeping pace with vehicle price increases. With inflation above the Fed’s target, many households are facing financial stress from rising food, fuel and healthcare costs compounded by an uncertain job market, making vehicle affordability a persistently complex challenge for the industry.
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 April 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.
