As of May 2022, The Average Monthy Payment for a New Car Rises to $712
It’s no coincidence that increases in new vehicle prices are accompanied by higher monthly payments. According to data collected by Cox Automotive, the number of weeks of income needed to purchase an average new vehicle has risen to 41.3 weeks as of May 2022. This is the fourth month in a row with in the Vehicle Affordability index, in which it was previously 40.8 weeks in April 2022.
Although the U.S. median income has risen 0.3%, prices and incentives have moved against it. Paid prices have risen 1.0% higher, average interest rates have risen eight basis points, and the average monthly payment rose 1.7% to a new high of $712 per month.
In contrast to May 2021, prices were lower and incentives were higher and more attractive. Plus, the average number of weeks based on the median income of the time needed to purchase a new vehicle was down 19%.
Click here for more info on the Cox Automotive/Moody’s Analytics Vehicle Affordability Index.
While the demand for new vehicles is high, and supply continues to be low, the data shows that the timing to purchase is “undesireable.”