New car shoppers faced higher costs in September as vehicle prices outpaced income growth. The average monthly payment climbed to $776, according to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index.
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The index measures how long the average worker would need to work to pay off the average new car loan. Kelley Blue Book parent company Cox Automotive publishes it monthly.
Data show that the average new vehicle transaction price reached $50,562 in September, up 0.9% from August. That puts the average price just below the record $50,614 set in December 2025. Interest rates offered some relief as the average auto loan interest rate slipped downward to 9.45% in September. The rate fell by one basis point, but that wasn’t enough to offset rising vehicle prices.
The average monthly payment reached $776, just $19 below the record high of $795 set in December of 2022.
Buyers also needed more time to earn enough income to purchase a new car. In September the average new vehicle costs represents roughly 9 months of income in the typical American household. The gap between the two may seem small, but it speaks to just how close monthly payments are to their previous high.
New cars take up a smaller amount of household income than they did a year ago, but higher prices continue to put pressure on monthly budgets. For shoppers, saving and planning ahead to shop may be the best solution to avoiding higher monthly payments.
