According to insights from Cox Automotive (Kelley Blue Book’s parent company), new-vehicle affordability declined in April due to higher prices, interest rates, and lower incentives.
The Cox Automotive/Moody’s Analytics Vehicle Affordability Index measures how long the average earner would need to work to pay off the average new car loan. It rose to 35.2 weeks in April, up from 34.9 weeks in March. That’s slightly high by historical standards, but nowhere near its 2022 peak of over 42 weeks.
April 2026 Numbers
- The average auto loan rate increased to 9.45%.
- The Kelley Blue Book average transaction price increased 0.7% to $49,461.
- The typical monthly payment for a new vehicle also rose by 1.3%, to $757.
- The median number of weeks of income needed to purchase the average new vehicle is now 35.2, up slightly from 34.9 last month.
Comparison to April 2025
Despite prices rising, new-vehicle affordability in April 2026 was better than a year earlier. Here’s why:
- Auto interest rates are lower by 21 basis points.
- Incentives are also higher by 3.5%
- Household incomes are higher by 4%
- The median number of weeks of income to purchase the average new vehicle is lower by 2.8%
While new-vehicle affordability dipped in April 2026, the positive note is that buying a new vehicle is more affordable than it was in April 2025.
View the full methodology behind these insights here.
