April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Average monthly payments rose 1.3% from March to $757.
Pexels/Vitalty Gariev
Consumers found new vehicles less affordable in April as their incomes didn’t keep pace with prices and interest rates.
Though transaction prices and automotive loan rates edged up for the month, household income grew more slowly, Cox Automotive said, and that mix doesn’t include other areas of inflation, including gas prices.
Cox estimates that the average auto loan rate rose nine basis points to about 9.5% while the average transaction price increased nearly a percentage point to $49,461 as incentives waned.
Average monthly payments rose 1.3% from March to $757, pushing up the number of median weeks of income needed to buy the average new vehicle from 34.9 to 35.2.
Meanwhile, household incomes rose just 0.3%, leading to reduced buying power on its own, let alone increased prices for gas, food and other essentials.
Despite all that, according to Cox’s calculations, new-vehicle affordability is better than a year earlier based on the fact that new-vehicle prices were about 2% higher.
“While monthly payments in April were higher year over year by 1%, the estimated number of weeks of median income needed to purchase the average new vehicle was lower by 2.8%,” said Jonathan Gregory, Cox senior director of economic and industry insights.
More Auto Finance

Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →
Auto Credit Access Loosens
December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.
Read More →