vehicle affordability Archives

New-Vehicle Affordability Improves in October 11/15/2024 New-vehicle affordability improved in October as interest rates declined, incentives increased, and income gains all favored the consumer, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. October had the best vehicle affordability level since August 2021. “Auto loan rates are beginning to decline, offering some relief to consumers,” said Cox Automotive Chief Economist Jonathan Smoke. “In October, we also observed an improvement in auto credit availability.… Read Article

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New-Vehicle Affordability Unchanged in September 10/16/2024 New-vehicle affordability was unchanged in September, as various factors offset any potential benefits for consumers, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Even with a larger-than-expected rate cut by the Fed in September, there hasn’t been a material improvement in auto loan rates or the overall affordability of new vehicles,” said Cox Automotive Chief Economist Jonathan Smoke. “Despite the minimal movement this fall, September… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improved in August to Best Level in 39 Months 09/16/2024 New-vehicle affordability improved in August to the best level since May 2021 as every factor moved in the consumer’s favor, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. Factors leading to improved new-vehicle affordability include lower prices and interest rates and higher incomes and incentives. “The affordability story is complex,” said Cox Automotive Chief Economist Jonathan Smoke. “When analyzing the data, we observe that affordability is… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improved in July to Best Level in Three Years 08/15/2024 New-vehicle affordability improved in July to the best level in three years as incentives grew and rates drifted lower, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “New-vehicle affordability saw an improvement in July, even as auto credit availability declined,” said Cox Automotive Chief Economist Jonathan Smoke. “Consequently, while new vehicles might be somewhat more affordable, they are harder to obtain due to the continued… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Declined in June 07/15/2024 In June, new-vehicle affordability experienced a slight decline, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Dealers and manufacturers became less aggressive with pricing due to widespread software disruptions,” said Cox Automotive Chief Economist Jonathan Smoke. “Despite this, consumers benefited from rising incomes and lower interest rates, keeping overall affordability better than last year.” The estimated average auto loan rate fell by 13 basis points… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improved in May 06/17/2024 New-vehicle affordability improved in May, more than reversing April’s setback, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “The improvement in affordability was a result of improving incentives, lower interest rates and ongoing income growth," said Cox Automotive Chief Economist Jonathan Smoke. The estimated average auto loan rate declined in May by 22 basis points (BPs) to 9.98%1 , which was the lowest average rate in 11… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Declined in April 05/15/2024 New-vehicle affordability declined in April, reversing some of the improvement in March, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “The decline in affordability resulted from negative trends in pricing and incentives, as manufacturers and dealers were less aggressive on promotions and discounting than they were for the quarter end,” said Cox Automotive Chief Economist Jonathan Smoke. The estimated average auto loan rate improved in… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Improves in March 04/15/2024 Trends in new-vehicle affordability factors moved in support of consumers again in March, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “The positive moves were assisted by the first material decline in interest rates in over two years,” said Cox Automotive Chief Economist Jonathan Smoke. “However, given the move-up in rates so far in April, that decline is likely to be short-lived.” Along with the… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

February New-Vehicle Affordability Best in 31 Months 03/15/2024 Trends in new-vehicle affordability factors moved in a positive direction in February, leading to the best affordability in 31 months (since July 2021), according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “New-vehicle affordability improved in the consumer’s favor again last month,” said Cox Automotive Chief Economist Jonathan Smoke. “Income growth continued and both the average new-vehicle price and the average interest rate declined.” The typical payment… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point

New-Vehicle Affordability Surges in January 02/15/2024 Trends in new-vehicle affordability factors moved in support of consumers in January, leading to better affordability compared to December and much improvement year over year, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. “Just as new-vehicle affordability improved in January to its best level in over two years, access to auto credit moved in the other direction,” said Cox Automotive Chief Economist Jonathan Smoke. “Income… Read Article

Vehicle Affordability Index Cox Automotive/Moody's Analytics Vehicle Affordability Index vehicle affordability Market Insights Data Point