The typical monthly payment held steady at $776, unchanged from October and near the 2025 high.
On the Dash:
- New-vehicle affordability improved in November after three months of decline due to strong wage growth.
- Average loan rates and vehicle prices increased modestly, but monthly payments remained stable.
- Buyers needed less income to purchase a new vehicle than a year earlier despite lower incentives.
New-vehicle affordability improved in November after three straight monthly declines, driven primarily by strong wage growth that offset higher interest rates and slightly higher vehicle prices. The improvement comes as affordability pressures remain a key concern for dealers and consumers entering the year-end.
The estimated average auto loan rate rose 7 basis points from October to 9.56%, though it remained 55 basis points lower than a year earlier. At the same time, the average new-vehicle transaction price increased 0.1% for the month to $49,814, according to Kelley Blue Book data. Despite these headwinds, 3.5% year over year income growth helped stabilize monthly payments and improve affordability metrics.
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The typical monthly payment held steady at $776, unchanged from October and near the 2025 high. While payments were up 1.2% from a year earlier, they remained below the December 2022 peak of $795. The number of weeks of median income needed to purchase the average new vehicle declined slightly to 36.3 weeks, down from 36.4 weeks in October.
Affordability in November was stronger than a year earlier, despite declining manufacturer incentives. Incentive levels were 17% lower year over year, yet buyers required less income to purchase a new vehicle than they did in November 2024. A year ago, the average new vehicle cost 37.1 weeks of median income, roughly three-quarters of a week more than in November 2025.
Macroeconomic factors, particularly rising wages, are playing a larger role in supporting vehicle affordability than manufacturer discounting. While interest rates remain elevated and transaction prices continue to edge higher, income gains have helped counterbalance those pressures.
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