Higher incomes, steady interest rates and increased incentives offset a near-$50,000 average transaction price in March, dropping the Cox Automotive/Moody’s Analytics Vehicle Affordability Index to 35.1.

The index reflects the number of weeks of income the average American needs to spend to purchase a new car or light-duty truck. It has now declined for five straight months, offering a timely counterpoint to concerns over steadily rising prices.

Analysts warn affordability concerns can’t be dismissed outright as the cost of ownership goes up.

“In addition to the immediate financial pressure of $4-a-gallon gas prices, major vehicle ownership costs such as maintenance, repairs and insurance have all seen sustained, outsized increases since the pandemic,” the report states. “For example, while new-vehicle prices are higher by roughly 15% versus 2021, some estimates suggest vehicle insurance costs have increased by nearly 60%, while routine service and maintenance costs are higher by 40%.”

Read the full report at Cox Automotive