New Vehicles More in Reach
February metrics continue gradual shift in consumer’s favor.
A drop in the average loan interest rate combined with other shifts to boost affordability in February.
IMAGE: Pixabay/Tumisu
New-vehicle affordability inched up in February to its best level since July 2021 as pandemic-induced conditions continue to fade.
The average payment fell 0.7% month-over-month while the number of median weeks of income to buy the average new model ticked down a tad from 37.4 to 37.1, about a 7% year-over-year decline, Cox Automotive said.
A mix of conditions is boosting affordability. The median consumer income grew 0.3% for the month as the average transaction price was essentially flat with a 0.1% decline. Growing manufacturer incentives helped further, along with a drop in the average loan interest rate from 10.28% to 10.15%.
The shifts combined to cut the average monthly car payment by 0.7% to $744, a $5 haircut after its peak of $795 in December 2022, Cox said.
Originally posted on F&I and Showroom
More Industry
World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →