Affordability Falls as Prices, Payments Rise
The Cox Automotive/Moody’s Analytics Vehicle Affordability Index decreased by 1.6% in April after hitting a 45-month high in March. Analysts blame tariffs for rising prices and payments despite strong economic indicators.
The index, which now stands at 37.3, reflects the number of weeks of income the average American must dedicate to the average new vehicle purchase.
“New-vehicle affordability declined in April to the worst level yet this year as the bite of higher prices and lower incentives turned around an improving trend,” writes Cox Automotive Chief Economist Jonathan Smoke in a release. “After steady improvements in affordability throughout 2025, we saw a significant setback in April with median weeks of income needed to buy an average new vehicle increasing by a full week.”
Cox’s Kelley Blue Book division reported new vehicle prices were 2.5% higher in April than the prior month. Average monthly payments increased by 3% to $753 in the same period; however, the average payment was 1.6% lower on a year-over-year-basis.
