Affordability in the new-car market picked up in May, thanks to increased incentives, a drop in auto loan rates, and continued income growth.
The improvements were reflected in both month-over-month and year-over-year comparisons.
New Cars Within Easier Reach
Affordability metrics improved in May as lending costs ebbed, finances flowed more freely.
June 19, 2024
The average new-vehicle loan rate fell in May to its lowest in 11 months.
Credit:
Pexels/Tom Fisk
1 min to read
Cox Automotive estimates that the average new-vehicle loan rate fell by 22 basis points to 9.98%, its lowest in 11 months.
The factors pushed the average monthly loan payment down by 1% to $752 after peaking in December 2022 at $795.
As incomes grew about 4% year-over-year, the number of weeks of median income needed to buy the average vehicle fell by about half a week to some 37 weeks, down 6% year-over-year, Cox said.
More Industry
Used-Vehicle Program Aims to Draw More Buyers
GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.
Read More →
Auto Dealers Cautiously Hopeful
Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.
Read More →
Black Book: Weekly Market Update
Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.
Read More →
Recall Service Reaches Milestone
Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.
Read More →
Meet the Editor: Hannah Mitchell
A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.
Read More →
Enhance Your Dealer's F&I Workflow at Agent Summit
This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.
Read More →
Auto Brands Hold the Line on Retention
A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.
Read More →
Report Finds Year-End F&I Strength
Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.
Read More →
China Leads Battery Production
Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.
Read More →
Overall Consumer Confidence Up
Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.
Read More →