US Auto Affordability: Historical Releases

Developments

September 2023

The typical new-vehicle payment declined 0.8%, and the number of median weeks of income needed to purchase the average new vehicle declined to 42.2 weeks from an upwardly revised 42.6 weeks in August. At 42.2, the affordability index was lower than the 42.9 recorded last September by 1.6%.

• The estimated typical monthly payment declined 0.8% to $765, from an upwardly revised $771 in August. The average monthly payment peaked at $794 in December.
• The median income grew 0.3%, the average new-vehicle transaction price declined 0.5%, and incentives from manufacturers were nearly unchanged. The typical new vehicle loan interest rate increased to 10.48%, which was a new peak.

• Average payments up 23-39% since 2019 and now out of reach for many households
• Auto loan rates moved higher in August and now into September with average new up to 9.61% and used at 14.03%
• About 50% of households can only afford a $400 monthly payment

June 2023

• The number of median weeks of income needed to purchase the average new vehicle in June was steady at 43.0 weeks from an upwardly revised 43.0 weeks in May, which had been the lowest level since September. The estimated number of weeks of median income needed to purchase the average new vehicle in June was up 1.5% from last year.
• The typical new-vehicle loan interest rate increased by 4 basis points to 9.63%
• The estimated typical monthly payment increased by 0.2% to $771 from an upwardly revised $770 in May. The average monthly payment peaked at $795 in December.