The latest reports from Cox Automotive and its Kelley Blue Book subsidiary show March was a good month for new vehicle affordability. While dealers enjoyed surging sales, income growth improved by 3.4% and the average transaction price declined by 0.2% compared with March 2024.

“Affordability is a key consideration for consumers when vehicle shopping and has been steadily improving over the last several years,” Jonathan Smoke, chief economist at Cox Automotive, writes in a release. “In 2025, we have seen improvements in affordability each month. … However, the real test will come in April, when tariffs are likely to have more of an impact on the economy and the auto market.”

KBB reports average payments declined 1.3% year-over-year to $739 in March, having peaked at $795 in December 2022.

Earlier this month, Edmunds reported $1,000-per-month loan payments held steady in the first quarter but 84-month loans claimed a record high of 19.8% of all new vehicle financing.

Read more at Cox Automotive