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.