Automotive consumers got a bit of a break last month as the mix of factors affecting new-vehicle affordability tipped slightly in their favor.

Cox Automotive data show softened auto interest rates, transaction price declines, and steady incomes brought its affordability index to its most consumer-friendly point since last March, when the Trump administration unveiled its first round of trade tariff hikes. 

The average loan rate fell two basis points to 9.5%, down 26 points year-over-year, and the average transaction price fell 2% to $49,191; it peaked in September at $50,080, Cox estimated.

The average monthly auto loan payment fell 1.4% to $756, according to Cox. That was up nearly 2% year-over-year but the lowest since last March. The average peaked in December 2022 at $795 amid pandemic-inflated prices. 

The median number of weeks of income needed to buy the average new vehicle fell month-over-month by less than a week to 36.2. 

Year-over-year affordability also improved despite prices being up about 2% and incentives down 6%, Cox said. That’s because of the lower interest rates and incomes elevated by nearly 4%. 

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