On the Dash:
- Monthly affordability worsened, driven by higher prices, rising rates, and weaker incentive support.
- Payments continue to climb, with average new-vehicle monthly costs reaching $757.
- Year-over-year fundamentals are improving, but not enough to offset short-term affordability pressure.
New-vehicle affordability declined in April as higher transaction prices, rising interest rates and weaker incentives increased the cost burden for buyers, according to Cox Automotive.
According to Cox Automotive, the Moody’s Analytics Vehicle Affordability Index rose to 35.2 weeks in April, up from 34.9 weeks in March. The index measures how many weeks of median income are required to purchase the average new vehicle, and remains elevated compared to historical norms, though still well below its 2022 peak of more than 42 weeks.
The average auto loan rate climbed to 9.45% in April, while the Kelley Blue Book average transaction price increased 0.7% to $49,461. The typical monthly payment for a new vehicle also rose 1.3% to $757.
Despite the monthly increase in costs, affordability improved compared to a year ago. Relative to April 2025, auto loan rates are down 21 basis points, incentives are up 3.5%, and household incomes have risen 4%, helping ease some pressure on buyers.
Even with those gains, Cox data shows consumers still need 35.2 weeks of income to purchase the average new vehicle, underscoring continued affordability challenges in the new-vehicle market.
