agent Entrepreneur logo
MenuMENU
SearchSEARCH

New-Model Affordability Improves in March

Still worse year-over-year, since prices and loan rates are elevated.

April 17, 2023
New-Model Affordability Improves in March

The average new-model transaction price decreased to just over $48,000 in March.

IMAGE: Pixabay/geralt

2 min to read


New vehicles became more affordable in March, according to Cox Automotive-Moody’s Analytics.

The Vehicle Affordability Index estimates that the average monthly payment fell 1% month-over-month to $754 after peaking in December at $791.

Ad Loading...

The improvement, along with more manufacturer incentives, rising consumer incomes, and a lower average new-vehicle loan rate, contributed to rising new-model sales, Cox said.

The resulting average loan payment dipped to its lowest since September, Cox said, as the estimated number of median weeks of income necessary to buy the average new model fell from 43 to 42.4, though that was up 5% from a year earlier.

Cox said the average new-model transaction price decreased to just over $48,000 and under the manufacturer’s suggested retail price for the first time in 20 months, according to Cox’s Kelley Blue Book. The MSRP fell by 1%.

Meanwhile, Cox said the median income increased 0.3% and manufacturer incentives reached their greatest volume in a year.

Of course, “affordable” is relative in post-pandemic times.

Ad Loading...

“Even with three consecutive months of improvement, affordability challenges are limiting access to the new-vehicle market by lower income and lower credit quality buyers, said Cox Automotive Chief Economist Jonathan Smoke.

“Subprime lending in the new market has decreased substantially since 2019, and deep subprime has disappeared. This trend induces automakers to focus on profitable products for consumers who can afford to buy, which keeps less affluent consumers out of the new-vehicle market altogether and limits what is available and possible in the used market for years to come.”

LEARN MORE: Report Paints Stark Affordability Picture

Originally posted on Auto Dealer Today

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...