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.