The monthly payments made by people who have purchased a new vehicle hit a record high in May, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index.
Though a 0.3 percent growth in median income supported vehicle affordability, all other factors moved against affordable pricing in May, a June 15 report detailing the index stated. The price paid for new vehicles rose by 1 percent while the average interest rates increased by eight basis points. “As a result of these moves, the estimated typical monthly payment increased 1.7 percent to $712, which was a new record high.”
“New-vehicle affordability in May was much worse than a year ago when prices were lower and incentives were higher. The estimated number of weeks of median income needed to purchase the average new vehicle in May was up 19 percent from last year,” the report stated….