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
Price Driving Insurance Churn
Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.
Read More →
AI Drives Dealer Website Traffic
Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.
Read More →
Automakers Tops in Fuel Economy
In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.
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 →
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 →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Some Auto Brands Cheaper to Insure
A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.
Read More →
Learn to Manage the Mayhem at Agent Summit
Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.
Read More →
Auto Recalls Sank Last Year
2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.
Read More →
Affordability Leads Top-Rated List
Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.
Read More →