A new car cost the equivalent of 33.9 weeks of income for the average American in December of last year. In January, that number declined to 32.2 weeks.
The data comes from the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. The index measures relative vehicle affordability, using the final price paid for each vehicle studied, the interest rate of associated financing, and household median income data.
Cox Automotive is the parent company of Kelley Blue Book.
The data show that vehicles have consistently becoming more affordable since last October, when the index reached a high point of 35.3 weeks. In January, both price paid and average interest rate declined, while median income improved.
