vehicle affordability Archives

March Sees Best New-Vehicle Affordability in 45 Months, But Tariffs Loom Large 04/15/2025 New-vehicle affordability improved in March and reached the best level in 45 months, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Affordability is a key consideration for consumers when vehicle shopping and has been steadily improving over the last several years,” said Jonathan Smoke, chief economist at Cox Automotive. “In 2025, we have seen improvements in affordability each month. In March, the average price of… Read Article

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New-Vehicle Affordability Improves Again in February 03/14/2025 New-vehicle affordability improved in February to the best level since the summer of 2021, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Affordability is relative,“ noted Jonathan Smoke, chief economist at Cox Automotive. “We’re back to a K-shaped economy where higher-income individuals are faring much better, while lower-income individuals face more challenges. In February, the average price of a new vehicle decreased again, improving affordability.… Read Article

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New-Vehicle Affordability Hits 41-Month High in January 02/17/2025 New-vehicle affordability improved in January to the best level in 41 months, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “New-vehicle affordability received a boost from the lower prices typically observed in January following the luxury brand sales surge in December,” said Jonathan Smoke, chief economist at Cox Automotive. “These lower prices, combined with higher incomes, more than offset lower incentives and a slight increase… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

December Sees Decline in New-Vehicle Affordability, Monthly Payments Hit Six-Month High 01/15/2025 New-vehicle affordability declined in December, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Lower interest rates, higher incentives and increased incomes could not offset the impact of higher prices. “In December, new vehicles were only slightly less affordable than in the previous month,” said Jonathan Smoke, chief economist at Cox Automotive. “The December index increased by 1% from November 2024, aligning with typical seasonal patterns.… Read Article

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New-Vehicle Affordability Declined in November 12/16/2024 New-vehicle affordability declined in November, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Lower interest rates, higher incentives and increased incomes could not offset the impact of rising prices. “In November, affordability saw a slight dip from the previous month as demand intensified, but the good news is that new vehicles are still more affordable compared to a year ago,” said Jonathan Smoke, chief economist… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improves in October 11/15/2024 New-vehicle affordability improved in October as interest rates declined, incentives increased, and income gains all favored the consumer, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. October had the best vehicle affordability level since August 2021. “Auto loan rates are beginning to decline, offering some relief to consumers,” said Cox Automotive Chief Economist Jonathan Smoke. “In October, we also observed an improvement in auto credit availability.… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Unchanged in September 10/16/2024 New-vehicle affordability was unchanged in September, as various factors offset any potential benefits for consumers, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Even with a larger-than-expected rate cut by the Fed in September, there hasn’t been a material improvement in auto loan rates or the overall affordability of new vehicles,” said Cox Automotive Chief Economist Jonathan Smoke. “Despite the minimal movement this fall, September… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improved in August to Best Level in 39 Months 09/16/2024 New-vehicle affordability improved in August to the best level since May 2021 as every factor moved in the consumer’s favor, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Factors leading to improved new-vehicle affordability include lower prices and interest rates and higher incomes and incentives. “The affordability story is complex,” said Cox Automotive Chief Economist Jonathan Smoke. “When analyzing the data, we observe that affordability is… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improved in July to Best Level in Three Years 08/15/2024 New-vehicle affordability improved in July to the best level in three years as incentives grew and rates drifted lower, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “New-vehicle affordability saw an improvement in July, even as auto credit availability declined,” said Cox Automotive Chief Economist Jonathan Smoke. “Consequently, while new vehicles might be somewhat more affordable, they are harder to obtain due to the continued… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Declined in June 07/15/2024 In June, new-vehicle affordability experienced a slight decline, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Dealers and manufacturers became less aggressive with pricing due to widespread software disruptions,” said Cox Automotive Chief Economist Jonathan Smoke. “Despite this, consumers benefited from rising incomes and lower interest rates, keeping overall affordability better than last year.” The estimated average auto loan rate fell by 13 basis points… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point