New-Vehicle Affordability Improves in October
October 2024 brought good news for car buyers as new-vehicle affordability reached its best level since August 2021, according to the latest data from Cox Automotive. A combination of declining interest rates, increased manufacturer incentives, and rising consumer incomes contributed to this positive trend.
For months, high vehicle prices and limited supply made affordability a concern, but these factors are now easing. Analysts note that manufacturers are using incentives strategically to clear inventories while boosting sales.
Additionally, the Federal Reserve’s recent monetary policies have positively influenced borrowing rates; challenges remain as some consumers still face high monthly payments due to declining trade-in equity. The recent shift in affordability marks a turning point, offering hope for buyers who were previously priced out of the market.
