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

Photo of MINI nameplate on the hood of a white MINI Cooper
Industryby Hannah MitchellJuly 23, 2026

Autos More Appealing

Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.

Read More →
red car parked in front of a sunset, The Used Market Divide, Agent Entrepreneur
Industryby Lauren LawrenceJuly 23, 2026

Used EVs Defy Overall Market

While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.

Read More →
Photo of a retriever dog looking out of an open SUV window with a yellow Peugeot headrest on the top of the window below it
Industryby Hannah MitchellJuly 16, 2026

Gone to the Dogs

A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.

Read More →
Ad Loading...
Aerial shot of a car dealership
Industryby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
Ad Loading...
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...