vehicle affordability Archives

New-Vehicle Affordability Little Changed in October Despite Higher Interest Rates 11/15/2023 Income growth favored consumers enough in October to offset the impact of higher prices, lower incentives, and higher auto loan rates. New-vehicle affordability improved slightly month over month and year over year, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “In October, strong income growth and smaller financed amounts helped the consumer overcome negative vehicle market dynamics,” said Cox Automotive Chief Economist Jonathan Smoke. The… Read Article

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New-Vehicle Affordability Improved in September 10/16/2023 In September, strong income growth and lower vehicle prices were enough to offset higher auto loan rates. Income and market dynamics favored consumers in September, and new-vehicle affordability improved enough in the month to now see improvement year over year. This marks the first time since 2019 that the Cox Automotive/Moody’s Analytics Vehicle Affordability Index (VAI) was lower year over year. The typical new-vehicle payment declined… Read Article

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

New-Vehicle Affordability Improved Again in August 09/15/2023 Income and vehicle market dynamics continued to favor consumers in August, as new-vehicle affordability improved again, extending the monthly streak of modest improvement all year. This time, strong income growth and higher incentives were enough to offset somewhat higher prices and steady but high interest rates. Although prices increased slightly, the typical payment also went up. However, the number of median weeks of income required to… 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 08/15/2023 Continuing a trend that has persisted for most of this year, new-vehicle affordability improved in July, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Strong income growth was assisted by lower prices and higher incentives that more than offset slightly higher rates. The typical monthly payment declined to the lowest level since October. The number of median weeks of income needed to purchase the average… Read Article

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

New-Vehicle Affordability Stable in June 07/14/2023 New-vehicle affordability was unchanged in June, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Strong income growth helped to offset higher prices and slightly higher rates. Higher prices and rates caused the typical payment to increase somewhat from May, which was the lowest payment since October. The number of median weeks of income needed to purchase the average new vehicle in June was steady at… Read Article

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

Strong Income Growth Helps New-Vehicle Affordability Improve Slightly in May 06/15/2023 New-vehicle affordability improved slightly again in May. Strong income growth helped to offset modestly higher prices and slightly higher rates. Higher prices and rates caused the typical payment to increase slightly from what had been the lowest payment in April since October. The number of median weeks of income needed to purchase the average new vehicle in May declined to 42.9 weeks from an upwardly revised… Read Article

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

New-Vehicle Affordability Improved Slightly in April 05/15/2023 New-vehicle affordability improved slightly in April and contributed to improving new-vehicle sales, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Most factors helped as declining new-vehicle prices, increasing incentives and improving incomes offset a small increase in the average new auto loan rate. The typical monthly payment declined to the lowest level since October 2022. The number of median weeks of income needed to purchase… Read Article

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

New-Vehicle Affordability Improved Again in March 04/14/2023 New-vehicle affordability improved again in March and contributed to improving new-vehicle sales, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. All factors helped as declining new-vehicle prices, increasing incentives, improving incomes, and a lower average new auto loan rate reduced the average payment to the lowest level since September 2022. The number of median weeks of income needed to purchase the average new vehicle in… Read Article

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

New-Vehicle Affordability Improved Again in February 03/16/2023 New-vehicle affordability improved again in February following modest improvement in January, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. All factors helped as declining new-vehicle prices, increasing incentives, improving incomes and slightly lower average new auto loan rate, as calculated by Moody’s Analytics, reduced the average monthly payment for a new vehicle to the lowest level since October 2022. The number of median weeks of income… Read Article

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

Seismic Shift: The U.S. New-Vehicle Market is Becoming a Luxury Market 02/23/2023 For many current car shoppers, new-vehicle prices are about as enjoyable as a sharp stick in the eye. All the reasons are well documented – supply disruptions, low inventory, new technology, higher interest rates, and automakers focused on high-earning buyers. With the average manufacturer’s suggested retail price (MSRP) now close to $50,000, finding big-ticket items was not difficult recently as our team cruised the 2023 Chicago… Read Article

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