New-vehicle affordability improved in July 2025, with the number of median weeks of income needed to purchase an average vehicle falling to 36.8 (from 37.0 in June and 38.6 a year ago), reflecting better purchasing conditions.

• The average monthly payment declined -0.4% MoM to $748 and was down -1.7% YoY, reaching its lowest level since March.
• Average vehicle prices edged down -0.1% MoM, while auto loan rates held steady at 9.63%, 108 bps lower YoY.
• Median income growth remained solid at 3.4% YoY, further supporting affordability.
• Cox Automotive noted that higher incentives, lower prices and stronger incomes outweighed the continued impact of tariffs on vehicle costs.