Following similar moves each month this fall, including another new record for average price paid and another low for incentives, new car affordability fell again in November, according to the report. a Cox Automotive newsletter.
November’s decline in affordability was due to all car market factors going against affordability while median income fell, albeit slightly. The median earnings weeks needed to buy an average new car in November rose to 43.1 weeks from a revised 42.6 weeks in October.
All factors change for affordability in November. Payables edged higher to a new record average price of $46,329. Incentives drop to a 20-year low. The average rate also rose to its highest level since June. Estimated median earnings in November fell 0.1%. With record-high prices, low incentives, and higher interest rates, the estimated typical monthly payment rose to a new record high of $687, up 20.7% year-over-year.
With November’s drop, new car affordability was much worse than it was a year ago when prices were lower and offers were much higher. Affordability in November was worse than any month mentioned in the index data, which dates back to January 2012.
Originally posted on Vehicle Remarketing