We don’t just pay for cars with cash. We also pay for them with our time. Measured in the time it takes to pay for the average car, things keep getting worse for car shoppers.
The Cox Automotive/Moody’s Analytics Vehicle Affordability Index tracks the cost of the average new car in terms of the number of weeks of income the average earner would need to buy it. The index hit a new high in November – 43.1 weeks.
Cox Automotive is the parent company of Kelley Blue Book.
Every factor moved against affordability in November. The price Americans paid for the average car rose – reaching $46,329 after eight straight months of increases. Discounts fell as dealers offered the lowest incentives we’ve seen in two decades. The estimated median income declined 0.1%. And interest rates moved to their highest level since June.
The result? The worst affordability figure since the index began in 2012. The estimated typical monthly payment increased to a new record high at $687, which was up 20.7% year over year.
The index will be updated again in mid-January.
