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.