Cox Automotive New Vehicle Affordability Index

Data Transportation

Source: Cox Automotive
Source Link: https://www.coxautoinc.com/
Frequency: Monthly
Next Release(s): March 16th, 2026 10:00 AM

Latest Updates

New-vehicle affordability improved in January as weeks of income fell to 35.6, reflecting lower prices and rates supporting purchasing power.
- Average auto loan rate declined to 9.52% (-2 bps MoM; -26 bps YoY), indicating slightly easier financing conditions than both last month and a year ago.
- Average transaction price fell -2.2% MoM to $49,191, providing a direct reduction in upfront vehicle cost pressures.
- Median income growth remained +3.7% YoY, adding purchasing power alongside lower borrowing costs and prices.
- Typical monthly payment decreased -1.4% MoM to $756 (+1.7% YoY), reaching the lowest level since March 2025 despite remaining above year-ago levels.
- Weeks of median income needed to purchase a vehicle declined to 35.6 from 36.2 in December, marking a clear monthly improvement in affordability.
- Affordability improved YoY even though incentives were -6.4% YoY and prices were +1.9% higher a year earlier, showing rates and income gains outweighed reduced manufacturer support.
- The affordability index fell -1.8% YoY, confirming conditions were better than last year when 36.2 weeks of income were required.
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New-vehicle affordability was essentially unchanged in December 2025, with weeks of median income needed to buy a new vehicle holding at 36.22 (vs 36.24 in November), as wage gains offset higher rates and prices.
- The Cox Automotive/Moody’s Analytics Vehicle Affordability Index showed affordability “essentially unchanged” in December, as strong wage growth counterbalanced higher financing costs and higher transaction prices.
- The estimated average auto loan rate rose +11 bps MoM to 9.62%, though it was -31 bps YoY, indicating slightly tighter month-to-month financing conditions but improvement versus last year.
- The average new-vehicle transaction price increased +0.8% MoM to $50,326, adding price pressure relative to November.
- Income growth remained strong at +3.5% YoY, providing the main offset to higher borrowing costs and higher prices.
- The typical monthly payment increased +0.3% MoM to $767 and was up +0.1% YoY, remaining below the December 2022 peak of $795.
- Weeks of median income needed to purchase the average new light vehicle was effectively flat at 36.22 (Nov: 36.24), reinforcing that affordability did not materially improve or worsen MoM.
- Affordability was slightly better than a year ago: despite prices being +0.7% higher YoY and incentives down -17.4% YoY, affordability improved +3.2% YoY (37.4 weeks required one year ago), reflecting support from lower interest rates and higher incomes.
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New-vehicle affordability improved in November 2025, with the weeks of median income needed to buy a new vehicle falling to 36.3 (-0.1 weeks MoM), reflecting wage gains offsetting higher financing costs.
- The Cox Automotive/Moody’s Analytics Vehicle Affordability Index improved after three consecutive monthly declines, marking a modest reversal driven primarily by income growth.
- Median income growth remained strong at +3.5% YoY, providing the main support to affordability despite other headwinds.
- The average auto loan rate rose +7 bps MoM to 9.56% but was -55 bps YoY, indicating month-to-month tightening even as conditions improved versus last year.
- Average new-vehicle transaction prices increased +0.1% MoM to $49,814, contributing only marginally to affordability pressures.
- The typical monthly payment was essentially flat MoM at $776 but up +1.2% YoY, remaining near the 2025 high yet below the December 2022 peak of $795.
- Manufacturer incentives were down -17% YoY, but affordability still improved, suggesting income growth outweighed reduced pricing support.
- Compared with November 2024, affordability was stronger, as buyers required fewer weeks of income than the 37.1 weeks needed a year earlier.
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New-vehicle affordability worsened slightly in October 2025, with the number of weeks of median income needed to buy the average new vehicle rising to 36.43 weeks (+0.03 weeks MoM), reflecting tighter conditions despite lower prices and solid income growth.
- The typical monthly payment increased +0.4% MoM to $766, now +1.2% YoY and the highest in sixteen months, despite softer pricing.
- Average transaction prices fell -0.4% MoM after a record high, yet affordability still declined as automakers reduced incentives, weakening buyer purchasing power.
- Median income rose +3.5% YoY, providing some support, but it was insufficient to offset lower incentives and still-elevated financing costs.
- The average auto loan rate edged up 2 bps MoM to 9.49%, though rates remain 83 bps lower YoY, offering only modest relief relative to 2024 levels.
- Compared with last year, overall affordability is 2% better YoY because income gains outpaced the +2% YoY increase in vehicle prices, though conditions have deteriorated on a month-to-month basis.
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New-vehicle affordability worsened in September 2025, with the average purchase requiring 37.4 weeks of median income (vs 36.8 weeks in August), reaching its lowest level since December 2024.
- The average new-vehicle price rose 2.1% MoM to a record $50,080, offsetting the impact of higher incentives and income growth.
- The average monthly payment increased 1.9% MoM (and +1.2% YoY) to $766, the highest in 15 months.
- The average auto loan rate edged down 1 bps MoM to 9.63%, remaining 89 bps lower YoY, providing limited relief on financing costs.
- Median income grew 3.4% YoY, supporting affordability but insufficient to counter price gains.
- Affordability improved 2% YoY, as higher incomes and lower rates outweighed last year’s lower prices and incentives.
- Despite record incentive spending, affordability deteriorated MoM, as rising vehicle prices continued to outweigh consumer gains.
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New-vehicle affordability held steady in August 2025 at 36.8 median weeks of income, unchanged MoM but improving from 38.1 weeks a year earlier.
- The average monthly payment rose 0.6% MoM to $752, the highest so far in 2025, though still -0.2% lower YoY.
- New-vehicle prices increased 0.5% MoM to the highest level in 2025, highlighting ongoing price pressures.
- The average auto loan rate edged up +1 bps to 9.64%, but was 102 bps lower YoY, easing some financing costs.
- Median income growth remained strong at 3.4% YoY, helping offset the impact of higher prices and payments.
- Compared with August 2024, affordability improved as higher incomes and lower loan rates outweighed last year’s lower prices and incentives.
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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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