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.