New-vehicle affordability in the United States remained relatively stable in February, though conditions continue to challenge consumers, according to Cox Automotive’s latest Vehicle Affordability Index.
The report shows buyers needed roughly 36 weeks of median income to purchase a new vehicle in February, little changed from the previous month but still elevated compared with historical norms.
Monthly payments also remained high, ranging between $756 and $767, reflecting the combined impact of vehicle pricing and financing costs. The average new-vehicle price was approximately $50,326, while auto loan rates hovered near 9.6 per cent, keeping borrowing costs elevated.
Cox Automotive said affordability has improved slightly on a year-over-year basis, largely due to income growth of about 3.5 per cent, which has helped offset some of the pressure from high vehicle prices and financing costs.
Despite that modest improvement, affordability remains constrained. Elevated transaction prices and reduced incentive spending continue to limit gains, keeping monthly payments near historically high levels and making it more difficult for consumers to enter the new-vehicle market.
The report suggests the market has entered a period of stabilization rather than meaningful improvement. While conditions are no longer deteriorating significantly, affordability remains a key factor shaping demand and influencing purchase decisions across the market.
Affordability challenges are also contributing to longer shopping cycles, as buyers take more time to compare options and secure financing, further slowing overall transaction activity.
Cox Automotive said further progress will likely depend on a combination of lower vehicle prices, improved incentive levels or continued gains in consumer income, particularly as buyers remain sensitive to monthly payment levels.
