Cox Automotive New Vehicle Affordability Index

Data Transportation

Source: Cox Automotive
Source Link: https://www.coxautoinc.com/
Frequency: Monthly
Next Release(s): September 15th, 2025 10:00 AM

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New-vehicle affordability improved in July 2025, with the number of median weeks of income needed to purchase an average vehicle falling to 36.8 (from 37.0 in June and 38.6 a year ago), reflecting better purchasing conditions.
- The average monthly payment declined -0.4% MoM to $748 and was down -1.7% YoY, reaching its lowest level since March.
- Average vehicle prices edged down -0.1% MoM, while auto loan rates held steady at 9.63%, 108 bps lower YoY.
- Median income growth remained solid at 3.4% YoY, further supporting affordability.
- Cox Automotive noted that higher incentives, lower prices and stronger incomes outweighed the continued impact of tariffs on vehicle costs.
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New-vehicle affordability improved slightly in June 2025, with the number of median weeks of income needed to purchase an average new vehicle falling to 37.3, down from 37.4 in May and 39.1 a year ago.
- The average monthly payment rose 0.1% MoM to $757, still down -1.4% YoY but the highest since December 2024.
- Average new-vehicle prices rose 0.2% MoM, while average auto loan rates increased 5 bps MoM to 9.94%, the highest since December.
- Income growth remained solid at 3.3% YoY, helping offset price and rate pressures.
- Tariffs remain a major headwind, with added costs of up to $5,700 per imported vehicle, especially affecting lower-priced models.
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New-vehicle affordability remained at its worst level of 2025 in May, holding steady at 37.4 weeks of median income needed to purchase an average new vehicle.
- The average new-vehicle payment rose 0.2% MoM to $756, the highest since December, though down -1.1% YoY.
- Average auto loan rates increased 9 bps MoM to 9.88%, still down -77 bps YoY.
- New-vehicle prices were flat MoM, according to Kelley Blue Book.
- YoY, affordability improved slightly from 39.0 weeks in May 2024 as higher incomes and incentives partially offset still-elevated rates.
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New-vehicle affordability declined in April, with the number of median weeks of income needed to buy an average new vehicle rising to 37.3 weeks from 36.3 in March, the worst level so far in 2025.
- The average new-vehicle payment rose 3.0% MoM to $753, the highest since December, but down -1.6% YoY.
- Auto loan rates rose 4 bps to 9.77%, though still down 92 bps YoY.
- Average new-vehicle prices increased 2.5% MoM, according to Kelley Blue Book.
- Affordability remains better than April 2024, when it took 39.1 weeks of income to purchase a vehicle.
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New-vehicle affordability improved in March and reached the best level in 45 months. The number of median weeks of income needed to purchase the average new vehicle declined to 36.7 weeks from the downwardly revised 36.9 weeks in February.
- In March, the typical payment declined by -0.2% MoM to $739, which was down -1.3% YoY. The average monthly payment had previously peaked at $795 in December 2022.
- The estimated average auto loan rate rose by 4 bps to 10.14% in March, which was lower year over year by 45 bps.
- According to Kelley Blue Book, the average price of new vehicles decreased by -0.2% MoM.
- Income growth, which increased by 3.4% year over year, further supported affordability.
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New-vehicle affordability improved in February to the best level since the summer of 2021 as the number of median weeks of income needed to purchase the average new vehicle declined to 37.2 weeks from 37.7 weeks in January.
- The estimated average auto loan rate rose by 5 bps to 10.16%1 in February, representing the highest average rate in four months. The average price of new vehicles decreased by -1.3% MoM, according to Kelley Blue Book. Affordability was further supported by income growth, which increased by 3.5% YoY.
- In February, the typical payment declined by -1.1% MoM to $748, which was down -1.3% YoY. The average monthly payment had previously peaked at $795 in December 2022.
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New vehicle affordability improved in January to the best level in 41 months.
- The average price of new vehicles decreased by -2.2% MoM, and the estimated average auto loan rate rose by 5 bps to 10.09% in January.
- Income growth was up 3.6% YoY, and the typical payment fell -1.3% MoM and -1.7% YoY.
- The number of median weeks of income needed to purchase the average new vehicle declined to 37.7 weeks from 38.2 weeks in December.
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The Cox Automotive/Moody’s Analytics Vehicle Affordability Index increased to 38.2 median weeks of income in December, up from 37.8 median weeks of income in November. The average auto loan rate fell -36 bps to 9.8%, the lowest in 18 months, but this was offset by a 1.5% MoM increase in the average new vehicle price. Higher incentives and a 3.6% YoY income growth somewhat softened the impact of rising prices.

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