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.