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In March, new cars were the same price as they were in February. It is remarkable news after a year in which they grew more difficult to afford.
Affordability is not just measured by price. The number of weeks the average earner would need to work to pay off the average new car is calculated by the Cox automotive/Moody's Analytics Vehicle Affordability Index. Cox is the parent company of Kelley Blue Book.
The average American would need to work 42.9 weeks to pay off a new car.
The average price of a new car in March was $45,928, down from a peak of over $47,000 in December.
Other factors worked against buyers. Interest rates went up. The incentives fell. The average monthly payment was raised to a new record.
Does driving an electric car save you money? A cheapskate is in charge of the numbers.
In March, new-vehicle affordability was worse than a year ago, when prices were lower and incentives higher. The number of weeks of median income needed to purchase the average new vehicle in March was up 18% from last year.
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