The Cox Automotive/Moody’s Analytics Vehicle Affordability Index for last month has been released.
The Affordability Index is a measure of the ability of people earning the median income to afford the purchase of an average-priced automobile.
The latest study has shown that purchasing new vehicles was more affordable in February "as represented by median weeks of income needed to purchase a new vehicle declined to 31.7 weeks from 32.5 weeks in January,” according to Cox Automotive.
It further revealed that “new vehicles have become relatively more affordable since October 2020, when the affordability index reached 35.3 weeks, the high point for the calendar year 2020.”
The report authored by Michael Brisson, senior economist at Moody’s, and Jonathan Smoke, chief economist at Cox Automotive, also concluded that because of the strong income support given to households, “affordability remains better than it was in February 2020 before the pandemic began.”
Another vehicle affordability report will be released by Cox Automotive and Moody’s Analytics on April 15.
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