Buying New Gets a Little More Affordable
Cox tallies show income bumps helped offset other pressures in October.
The average loan interest rate was a new record of 10.55%, pushing the estimated average monthly payment to $767, but income bumps offset the increase.
IMAGE: Pixabay/OleksandrPidvalnyi
The affordability of new vehicles edged up slightly in October due to consumer income growth, Cox Automotive said.
The small bump stood out, since high interest rates, increase loan rates and flat incentives squeezed from the other end of the purchase picture.
Cox said the average auto loan payment rose 0.2% while the number of median weeks of income to buy the average new model fell month-over-month from 38.7 to 38.6 and from 40.1 weeks year-over-year, or 3.7%.
Smaller financed amounts, along with the bigger incomes, helped offset the other pressures, said Cox Senior Economist Jonathan Smoke.
Median income rose 0.3%, the same bump as the average new-vehicle sale price, Cox said.
The average loan interest rate was a new record of 10.55%, pushing the estimated average monthly payment to $767.
LEARN MORE: New-Car Prices Fall
Originally posted on Auto Dealer Today
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