Even prior to the implementation of 25 percent tariffs on imported automobiles by the Trump administration in early April, new vehicle shoppers were already facing record-high pricing for years to that point. Coupled with inflated interest rates, this creates a tough situation for consumers that aren’t necessarily strapped with cash, and things don’t appear to be in line to improve any time soon. In fact, new vehicle affordability actually worsened in the month of April, largely on the backs of tariffs and in spite of a strong economy, overall.
According to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index, new vehicle affordability in April actually improved versus one year ago, when it took 39.1 weeks of median income to buy an average new vehicle – coming in at 37.3 weeks last month. However, it also dropped quite a bit, month-over-month, compared to March’s 36.3 weeks, as the average monthly payment buyers are shelling out rose by three percent to $753 – the highest since December 2024, in spite of a 1.6 percent drop, year-over-year.
A year ago, prices were 1.1 percent lower, but interest rates were higher, and household incomes and incentives were also lower in April 2024. The estimated average auto loan rate increased slightly in April by four basis points to 9.77 percent, which was 92 basis points lower year over year, while the average new-vehicle price increased 2.5 percent for the month. Income growth remained relatively strong, but didn’t offset the impact of higher prices and lower incentives. Looking ahead, most expect the prices of new vehicles to increase at least slightly due to tariffs, which could signal that affordability may be in line to slip further, barring other improvements in income and/or interest rates.
“New-vehicle affordability declined in April to the worst level yet this year as the bite of higher prices and lower incentives turned around an improving trend,” said Cox Automotive Chief Economist Jonathan Smoke. “After steady improvements in affordability throughout 2025, we saw a significant setback in April with median weeks of income needed to buy an average new vehicle increasing by a full week.”
The move would require a 60-vote supermajority to take effect.
A useful bit of information when accidents occur.
A very nice example of the family hauler.
Certain trim pieces may have insufficient adhesive bonding.
Ford made big improvements in short order as a result.
The GM rival is plagued with reliability concerns.
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At some point, Don's fans are gonna realize: Tariffs are TAXES on Americans. One way or another, prices are going to increase-----because they can. Supply and Demand. Not enough Hondas coming ashore? Demand is still there. So the supply of US-made automobiles can rise to address the demand.
Well done, People; you're paying a tax, because that's the cost of eliminating DEI (just one example). You thought this was all going to work out in your favor? I'd say to 'think again', but if people exercised critical thinking skills, we would not be in this long-term mess.
You live in a complete fantasy world. What has to happen for you to realize the model of the world in your head is BS and you need to adjust that model?
I voted for exactly this. Very exciting times in our history! Definitely not ever going to get tired of winning, especially after the last regime.
If ford is actually selling at employee pricing as they advertise then they are eating the tariff!! Plus the tariff is not on retail value. Go Trump!!!! Promises made, Promises kept!!!!!
How about we start by you admitting that a corporate tax, that I’m sure you are all in favor of, is a tax on consumers as well? Then maybe we can have a real conversation. I won’t hold my breath.
I also find it interesting that the same people they claim corporate greed is why prices are high are the same people that seem to think these same “ greedy” corporations can’t absorb the tariffs themselves and there for it’s all the orange man’s fault. 🙄
Plain States...did you say critical thinking skills...I think that ship has sailed with the Trumpets. As far as the tariffs are concerned...I like the idea of showing the extra tariff costs as a line item on every bill of sale, or posted price tag. That way, everyone can see how Trump's tariffs are benefitting everyone.