Summary
- New car affordability has dropped 13.3% from August 2019 to August 2022; used car affordability has dropped 26.7% based on iSeeCars Car Affordability Index
- Used cars which had been affordable in 2019 but aren’t in 2022 include several popular models such as the Honda Accord, Honda CR-V, Subaru Forester, Toyota Camry, and many others
- New cars that were affordable in 2019 but aren't in 2022 include the Nissan Frontier, Chrysler 300, Jeep Cherokee, and Kia Sorento
iSeeCars analyzed new and used car affordability over time by calculating its Car Affordability Index, which compares median household income to an idealized income for financing a car. An index value of 100 suggests household income is exactly equal to the idealized income for a car purchase. Values above 100 indicate household income is above the idealized income and therefore cars are affordable; similarly values below 100 suggest actual income is less than the idealized income, meaning cars are unaffordable. For example, an index value of 125 means household income is 25 percent more than the idealized income, and an index value of 75 means household income is 25 percent less. The idealized income is based on typical car loan rates and terms (60 months for new cars and 36 for used cars), as well as an assumption that car payments should be no more than 10 percent of a household’s annual income.
“Due to supply chain shortages and increased demand, the rising prices of new and used cars have outpaced income growth,” said iSeeCars Executive Analyst Karl Brauer. “From August of 2019, well before the pandemic lockdowns started, to August of 2022, new car prices increased by almost 29 percent, and three-year-old used car prices increased by 52 percent, but incomes increased by only 13%. People still need to replace their vehicles, so the resulting drop in affordability means shoppers are either taking longer loan terms and paying higher interest rates, putting down less money for a down payment, or even forgoing the kind of car they originally wanted for a lower cost model in order to make ends meet.”
Used Car Affordability
iSeeCars also analyzed the affordability of three-year-old used cars , beginning in April 2019 through August 2022. The iSeeCars Car Affordability Index averaged an almost perfect 99.5 in 2019, dropping to averages of 93.4 in 2020, 81.8 in 2021, and finally 72.0 in 2022. “Used cars were affordable in 2019, but affordability began dropping after the beginning of the pandemic lockdowns, around March of 2020. The drop in affordability accelerated in 2021,” said Brauer. “This coincides with higher used car prices and the lack of used car inventory due to the decrease in new vehicle production, which ultimately led to used car shoppers paying more for their desired vehicles.”
Used Cars that are No Longer Affordable
Using its Car Affordability Index, iSeeCars calculated the pricing threshold for affordable cars and analyzed three-year-old used cars that had been affordable between April and December 2019 but were no longer affordable from January to August 2022. The list includes some of the most popular models, such as the Toyota Camry and RAV4, the Honda Accord and CR-V, and the Subaru Forester and Outback. Here are the 33 vehicles that fell out of affordability over the past three years, in descending order of their used car price in August 2022.
| Used Cars That Are No Longer Affordable | ||||
| Rank | Vehicle | % Above Affordability | $ over Aug 2019 Price | 3yo Used Car Price Aug 2022 |
| 1 | Toyota Avalon | 37.6% | $13,181 | $35,137 |
| 2 | Chevrolet Traverse | 36.1% | $12,416 | $34,751 |
| 3 | Volvo S60 | 35.5% | $14,708 | $34,615 |
| 4 | Ford Mustang | 31.2% | $11.984 | $33,500 |
| 5 | Acura TLX | 26.7% | $11,287 | $32,360 |
| 6 | Toyota Prius | 25.6% | $12,489 | $32,090 |
| 7 | Toyota RAV4 | 25.5% | $11,522 | $32,056 |
| 8 | MINI Convertible | 24.4% | $10,100 | $31,779 |
| 9 | MINI Countryman | 22.6% | $11,748 | $31,318 |
| 10 | Volkswagen Golf GTI | 20.9% | $11,041 | $30,868 |
| 11 | Nissan Maxima | 19.6% | $9,850 | $30,547 |
| 12 | Ford Edge | 19.1% | $8,051 | $30,423 |
| 13 | Honda CR-V | 18.2% | $10,594 | $30,193 |
| 14 | MINI Clubman | 18.0% | $11,596 | $30,145 |
| 15 | Audi A3 | 17.7% | $10,980 | $30,059 |
| 16 | Subaru Outback | 17.5% | $8,366 | $30,018 |
| 17 | Subaru Forester | 16.5% | $10,016 | $29,759 |
| 18 | Nissan Frontier | 13.3% | $8,071 | $28,943 |
| 19 | Honda Accord | 12.9% | $11,386 | $28,847 |
| 20 | Mazda CX-5 | 11.4% | $9,141 | $28,464 |
| 21 | Nissan Pathfinder | 11.0% | $6,889 | $28,358 |
| 22 | Subaru Crosstrek | 9.3% | $7,674 | $27,916 |
| 23 | GMC Terrain | 8.8% | $9,062 | $27,793 |
| 24 | MINI Hardtop 2 Door | 8.55 | $10,469 | $27,708 |
| 25 | Acura ILX | $8.3% | $10,004 | $27,655 |
| 26 | Hyundai Santa Fe | 7.3% | $7,000 | $27,406 |
| 27 | Toyota Camry | 7.3% | $10,856 | $27,404 |
| 28 | MINI Hardtop 4 Door | 7.3% | $9,571 | $27,403 |
| 29 | Volkswagen Tiguan | 6.6% | $11,089 | $27,238 |
| 30 | Chrysler 300 | 6.2% | $7,017 | $27,137 |
| 31 | Kia Sorento | 5.8% | $8,228 | $27,013 |
| 32 | Jeep Cherokee | 5.4% | $7,823 | $26,927 |
| 33 | Jeep Compass | 0.2% | $9,899 | $25,605 |
| National 2022 Affordable 3yo Used Car Price | $25,542 | |||
Additional high-volume models priced above iSeeCars’ affordability standard include the Chevrolet Traverse, Ford Edge, Mazda CX-5, and Toyota Prius. All of these vehicles were popular, high-volume new cars, which should result in sufficient used car supply and accessible pricing for most consumers. But the drop in new-car production has caused used car demand, and prices, to rise at an unprecedented rate.
“This is yet another indicator of how drastically prices have shifted on used cars in recent years. When you have a used Toyota RAV4’s price going from $20,534 to $32,090 in 3 years, that’s a clear indicator of affordability lost,” said Brauer.
New Car Affordability
New Cars that are No Longer Affordable
Using its Car Affordability Index, iSeeCars calculated the pricing threshold for affordable cars and analyzed new cars that were affordable between April and December 2019, before the pandemic, and were no longer affordable as of January to August 2022. Four models met these criteria.
| New Cars That Are No Longer Affordable – iSeeCars Study | ||||
| Rank | Vehicle | % Above Affordability | $ over Aug 2019 Price | New Car Price Aug 2022 |
| 1 | Nissan Frontier | 10.0% | $12,687 | $39,833 |
| 2 | Chrysler 300 | 9.8% | $9,621 | $39,767 |
| 3 | Kia Sorento | 9.2% | $9,094 | $39,570 |
| 4 | Jeep Cherokee | 7.8% | $9,714 | $39,030 |
| National Affordable New Car Price | $36,221 | |||
New and Used Car Affordability By State
iSeeCars calculated its Affordability Index for each state to determine which states had the biggest changes in affordability between August 2019 and August 2022 for both new and used cars.| New Car Affordability By State | ||||
| Rank | State | Affordability Index August 2019 | Affordability Index August 2022 | % Change in Affordability |
| 1 | Alaska | 96.17 | 77.53 | -19.4% |
| 2 | Utah | 97.04 | 78.81 | -18.8% |
| 3 | Rhode Island | 94.25 | 78.21 | -17.0% |
| 4 | Maryland | 121.95 | 102.24 | -16.2% |
| 5 | Delaware | 86.69 | 74.28 | -14.3% |
| 6 | Wisconsin | 83.79 | 72.59 | -13.4% |
| 7 | North Dakota | 75.12 | 65.17 | -13.2% |
| 8 | Mississippi | 60.55 | 52.62 | -13.1% |
| 9 | Arkansas | 62.70 | 54.59 | -12.9% |
| 10 | Oklahoma | 67.09 | 58.46 | -12.9% |
| 11 | Virginia | 103.01 | 90.23 | -12.4% |
| 12 | Kentucky | 69.10 | 60.64 | -12.2% |
| 13 | Missouri | 77.33 | 68.57 | -11.3% |
| 14 | Indiana | 78.34 | 69.62 | -11.1% |
| 15 | Nevada | 82.11 | 73.07 | -11.0% |
| 16 | Ohio | 80.10 | 71.52 | -10.7% |
| 17 | Texas | 79.18 | 70.81 | -10.6% |
| 18 | Wyoming | 72.98 | 65.55 | -10.2% |
| 19 | New York | 92.50 | 83.37 | -9.9% |
| 20 | Illinois | 90.00 | 81.30 | -9.7% |
| 21 | New Mexico | 67.64 | 61.14 | -9.6% |
| 22 | Connecticut | 104.20 | 94.28 | -9.5% |
| 23 | Alabama | 65.88 | 59.81 | -9.2% |
| 24 | Minnesota | 94.80 | 86.12 | -9.2% |
| 25 | Kansas | 75.76 | 69.40 | -8.4% |
| 26 | Florida | 80.28 | 73.67 | -8.2% |
| 27 | Nebraska | 77.04 | 70.88 | -8.0% |
| 28 | Louisiana | 61.18 | 56.48 | -7.7% |
| 29 | Hawaii | 113.73 | 105.07 | -7.6% |
| 30 | Tennessee | 70.52 | 65.44 | -7.2% |
| 31 | South Carolina | 70.25 | 65.24 | -7.1% |
| 32 | Michigan | 77.15 | 71.75 | -7.0% |
| 33 | Massachusetts | 113.03 | 105.17 | -7.0% |
| 34 | Iowa | 74.12 | 69.24 | -6.6% |
| 35 | Pennsylvania | 85.37 | 79.86 | -6.5% |
| 36 | California | 98.18 | 91.96 | -6.3% |
| 37 | North Carolina | 74.05 | 69.71 | -5.9% |
| 38 | Georgia | 77.49 | 72.96 | -5.9% |
| 39 | Washington | 98.79 | 93.31 | -5.5% |
| 40 | Arizona | 80.50 | 76.05 | -5.5% |
| 41 | New Jersey | 105.42 | 100.02 | -5.1% |
| 42 | South Dakota | 68.27 | 65.44 | -4.1% |
| 43 | Montana | 64.69 | 62.15 | -3.9% |
| 44 | Maine | 76.36 | 73.83 | -3.3% |
| 45 | Vermont | 88.11 | 85.24 | -3.3% |
| 46 | West Virginia | 62.29 | 60.31 | -3.2% |
| 47 | Colorado | 89.47 | 86.64 | -3.2% |
| 48 | Idaho | 68.26 | 66.64 | -2.4% |
| 49 | Oregon | 78.94 | 77.07 | -2.4% |
| 50 | New Hampshire | 101.60 | 102.61 | 1.0% |
| Used Car Affordability By State | ||||
| Rank | State | Affordability Index August 2019 | Affordability Index August 2022 | % Change in Affordability |
| 1 | North Dakota | 90.10 | 62.12 | -31.1% |
| 2 | Utah | 113.88 | 80.17 | -29.6% |
| 3 | Kansas | 91.51 | 64.48 | -29.5% |
| 4 | Alaska | 101.30 | 71.49 | -29.4% |
| 5 | Connecticut | 123.94 | 88.62 | -28.5% |
| 6 | New Mexico | 75.05 | 54.53 | -27.3% |
| 7 | Wyoming | 74.90 | 55.41 | -26.0% |
| 8 | Minnesota | 108.37 | 80.32 | -25.9% |
| 9 | Maryland | 132.67 | 98.37 | -25.9% |
| 10 | Nebraska | 90.94 | 67.57 | -25.7% |
| 11 | Kentucky | 78.42 | 58.41 | -25.5% |
| 12 | Maine | 92.07 | 68.88 | -25.2% |
| 13 | Rhode Island | 108.65 | 81.50 | -25.0% |
| 14 | Virginia | 113.33 | 85.07 | -24.9% |
| 15 | Ohio | 92.97 | 70.25 | -24.4% |
| 16 | Alabama | 75.05 | 56.82 | -24.3% |
| 17 | Massachusetts | 124.37 | 94.40 | -24.1% |
| 18 | Illinois | 97.86 | 74.31 | -24.1% |
| 19 | Hawaii | 114.56 | 87.30 | -23.8% |
| 20 | Wisconsin | 94.18 | 71.79 | -23.8% |
| 21 | Delaware | 100.58 | 76.86 | -23.6% |
| 22 | Florida | 87.32 | 66.90 | -23.4% |
| 23 | North Carolina | 83.98 | 64.57 | -23.1% |
| 24 | Iowa | 88.71 | 68.27 | -23.0% |
| 25 | South Carolina | 80.00 | 61.58 | -23.0% |
| 26 | New York | 105.52 | 81.43 | -22.8% |
| 27 | Nevada | 89.38 | 69.05 | -22.7% |
| 28 | Texas | 87.23 | 67.50 | -22.6% |
| 29 | Louisiana | 70.50 | 54.64 | -22.5% |
| 30 | South Dakota | 80.77 | 62.61 | -22.5% |
| 31 | New Jersey | 124.86 | 96.99 | -22.3% |
| 32 | Arkansas | 68.13 | 53.02 | -22.2% |
| 33 | California | 113.03 | 87.97 | -22.2% |
| 34 | Georgia | 86.91 | 67.84 | -21.9% |
| 35 | Mississippi | 65.52 | 51.17 | -21.9% |
| 36 | Colorado | 103.27 | 80.86 | -21.7% |
| 37 | Pennsylvania | 97.10 | 76.25 | -21.5% |
| 38 | Oklahoma | 76.17 | 59.86 | -21.4% |
| 39 | Missouri | 83.80 | 65.92 | -21.3% |
| 40 | West Virginia | 69.09 | 54.65 | -20.9% |
| 41 | Washington | 104.06 | 82.41 | -20.8% |
| 42 | Indiana | 86.93 | 68.90 | -20.7% |
| 43 | Montana | 71.48 | 56.71 | -20.7% |
| 44 | Tennessee | 79.41 | 63.04 | -20.6% |
| 45 | Michigan | 89.36 | 71.80 | -19.7% |
| 46 | Arizona | 90.06 | 72.71 | -19.3% |
| 47 | New Hampshire | 115.86 | 96.05 | -17.1% |
| 48 | Vermont | 96.31 | 80.73 | -16.2% |
| 49 | Idaho | 72.74 | 62.60 | -14.0% |
| 50 | Oregon | 86.18 | 74.85 | -13.1% |
New and Used Car Affordability By Metro Area
iSeeCars calculated the Affordability Index for the top 50 most populous metropolitan areas to determine which states had the biggest changes in affordability between August 2019 and August 2022 for both new and used cars.| New Car Affordability By Metro Area | ||||
| Rank | State | Affordability Index August 2019 | Affordability Index August 2022 | % Change in Affordability |
| 1 | Salt Lake City, UT | 106.21 | 82.78 | -22.1% |
| 2 | Memphis, TN-MS-AR | 77.7 | 62.4 | -19.7% |
| 3 | Louisville/Jefferson County, KY-IN | 83.86 | 68.97 | -17.8% |
| 4 | San Antonio-New Braunfels, TX | 86.58 | 71.68 | -17.2% |
| 5 | Dallas-Fort Worth-Arlington, TX | 95.45 | 79.18 | -17.0% |
| 6 | Milwaukee-Waukesha, WI | 89.86 | 74.93 | -16.6% |
| 7 | Providence-Warwick, RI-MA | 101.85 | 85.27 | -16.3% |
| 8 | Richmond, VA | 100.49 | 84.25 | -16.2% |
| 9 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 142.49 | 119.5 | -16.1% |
| 10 | New Orleans-Metairie, LA | 73.64 | 62.49 | -15.1% |
| 11 | Los Angeles-Long Beach-Anaheim, CA | 104.47 | 88.86 | -14.9% |
| 12 | Austin-Round Rock-Georgetown, TX | 108.51 | 92.49 | -14.8% |
| 13 | Hartford-East Hartford-Middletown, CT | 116.34 | 100.1 | -14.0% |
| 14 | Las Vegas-Henderson-Paradise, NV | 83.27 | 71.93 | -13.6% |
| 15 | Kansas City, MO-KS | 91.68 | 79.73 | -13.0% |
| 16 | New York-Newark-Jersey City, NY-NJ-PA | 105.28 | 92.07 | -12.5% |
| 17 | Baltimore-Columbia-Towson, MD | 114.76 | 100.61 | -12.3% |
| 18 | Chicago-Naperville-Elgin, IL-IN-WI | 101.07 | 88.74 | -12.2% |
| 19 | St. Louis, MO-IL | 89.77 | 79 | -12.0% |
| 20 | Cleveland-Elyria, OH | 79.13 | 69.98 | -11.6% |
| 21 | Orlando-Kissimmee-Sanford, FL | 89.65 | 79.35 | -11.5% |
| 22 | Houston-The Woodlands-Sugar Land, TX | 85.45 | 76.46 | -10.5% |
| 23 | Charlotte-Concord-Gastonia, NC-SC | 87.44 | 78.38 | -10.4% |
| 24 | San Jose-Sunnyvale-Santa Clara, CA | 161.73 | 145.19 | -10.2% |
| 25 | Tampa-St. Petersburg-Clearwater, FL | 82.83 | 74.79 | -9.7% |
| 26 | Minneapolis-St. Paul-Bloomington, MN-WI | 109.3 | 98.7 | -9.7% |
| 27 | Columbus, OH | 90.94 | 82.13 | -9.7% |
| 28 | Jacksonville, FL | 85.6 | 77.32 | -9.7% |
| 29 | Nashville-Davidson--Murfreesboro--Franklin, TN | 86.96 | 78.87 | -9.3% |
| 30 | Cincinnati, OH-KY-IN | 91.33 | 83.3 | -8.8% |
| 31 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 98.54 | 90.21 | -8.5% |
| 32 | Virginia Beach-Norfolk-Newport News, VA-NC | 90.47 | 82.92 | -8.3% |
| 33 | Seattle-Tacoma-Bellevue, WA | 119.49 | 109.8 | -8.1% |
| 34 | Oklahoma City, OK | 71.78 | 65.97 | -8.1% |
| 35 | Detroit-Warren-Dearborn, MI | 83.58 | 76.83 | -8.1% |
| 36 | San Francisco-Oakland-Berkeley, CA | 132.46 | 122.43 | -7.6% |
| 37 | Atlanta-Sandy Springs-Alpharetta, GA | 90.86 | 84.56 | -6.9% |
| 38 | Phoenix-Mesa-Chandler, AZ | 87.33 | 81.46 | -6.7% |
| 39 | Pittsburgh, PA | 83.2 | 78.1 | -6.1% |
| 40 | Miami-Fort Lauderdale-Pompano Beach, FL | 79.08 | 74.51 | -5.8% |
| 41 | Buffalo-Cheektowaga, NY | 81.23 | 76.67 | -5.6% |
| 42 | Portland-Vancouver-Hillsboro, OR-WA | 95.75 | 90.72 | -5.3% |
| 43 | Raleigh-Cary, NC | 100.5 | 95.8 | -4.7% |
| 44 | Boston-Cambridge-Newton, MA-NH | 121.97 | 116.47 | -4.5% |
| 45 | Rochester, NY | 84.31 | 81.2 | -3.7% |
| 46 | Denver-Aurora-Lakewood, CO | 98.72 | 95.26 | -3.5% |
| 47 | Indianapolis-Carmel-Anderson, IN | 81.5 | 78.8 | -3.3% |
| 48 | San Diego-Chula Vista-Carlsbad, CA | 105.18 | 101.73 | -3.3% |
| 49 | Sacramento-Roseville-Folsom, CA | 88.12 | 88.78 | 0.7% |
| 50 | Riverside-San Bernardino-Ontario, CA | 86.3 | 88.46 | 2.5% |
| Used Car Affordability By Metro Area | ||||
| Rank | State | Affordability Index August 2019 | Affordability Index August 20022 | % Change in Affordability |
| 1 | Washington-Arlington-Alexandria, DC-VA-MD-WV | 142.49 | 112.12 | -28.6% |
| 2 | Louisville/Jefferson County, KY-IN | 83.86 | 67.69 | -28.6% |
| 3 | Salt Lake City, UT | 106.21 | 85.51 | -28.2% |
| 4 | Miami-Fort Lauderdale-Pompano Beach, FL | 79.08 | 60.93 | -27.9% |
| 5 | Hartford-East Hartford-Middletown, CT | 116.34 | 91.15 | -27.8% |
| 6 | Baltimore-Columbia-Towson, MD | 114.76 | 94.4 | -27.6% |
| 7 | Virginia Beach-Norfolk-Newport News, VA-NC | 90.47 | 79.37 | -26.9% |
| 8 | Columbus, OH | 90.94 | 79.53 | -26.7% |
| 9 | Cincinnati, OH-KY-IN | 91.33 | 77.07 | -26.3% |
| 10 | Memphis, TN-MS-AR | 77.7 | 60.84 | -25.9% |
| 11 | Richmond, VA | 100.49 | 80.51 | -25.8% |
| 12 | Las Vegas-Henderson-Paradise, NV | 83.27 | 67.47 | -25.4% |
| 13 | Minneapolis-St. Paul-Bloomington, MN-WI | 109.3 | 91.72 | -25.3% |
| 14 | Dallas-Fort Worth-Arlington, TX | 95.45 | 72.79 | -25.0% |
| 15 | Providence-Warwick, RI-MA | 101.85 | 82.6 | -24.9% |
| 16 | Kansas City, MO-KS | 91.68 | 78.55 | -24.8% |
| 17 | San Antonio-New Braunfels, TX | 86.58 | 68.71 | -24.6% |
| 18 | New York-Newark-Jersey City, NY-NJ-PA | 105.28 | 88.51 | -24.6% |
| 19 | Raleigh-Cary, NC | 100.5 | 89.66 | -24.3% |
| 20 | Boston-Cambridge-Newton, MA-NH | 121.97 | 103.65 | -24.2% |
| 21 | Cleveland-Elyria, OH | 79.13 | 66.51 | -23.7% |
| 22 | Chicago-Naperville-Elgin, IL-IN-WI | 101.07 | 80.85 | -23.7% |
| 23 | San Francisco-Oakland-Berkeley, CA | 132.46 | 110.69 | -23.6% |
| 24 | Jacksonville, FL | 85.6 | 74.5 | -23.3% |
| 25 | Pittsburgh, PA | 83.2 | 72.62 | -23.0% |
| 26 | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 98.54 | 86.42 | -22.8% |
| 27 | Charlotte-Concord-Gastonia, NC-SC | 87.44 | 73.9 | -22.7% |
| 28 | Seattle-Tacoma-Bellevue, WA | 119.49 | 94.99 | -22.6% |
| 29 | Los Angeles-Long Beach-Anaheim, CA | 104.47 | 83.14 | -22.3% |
| 30 | Orlando-Kissimmee-Sanford, FL | 89.65 | 73.39 | -22.0% |
| 31 | Atlanta-Sandy Springs-Alpharetta, GA | 90.86 | 78.77 | -21.8% |
| 32 | San Jose-Sunnyvale-Santa Clara, CA | 161.73 | 141.72 | -21.7% |
| 33 | Milwaukee-Waukesha, WI | 89.86 | 75.52 | -21.6% |
| 34 | Denver-Aurora-Lakewood, CO | 98.72 | 89.81 | -21.3% |
| 35 | Austin-Round Rock-Georgetown, TX | 108.51 | 84.5 | -21.3% |
| 36 | Detroit-Warren-Dearborn, MI | 83.58 | 77.08 | -21.1% |
| 37 | Houston-The Woodlands-Sugar Land, TX | 85.45 | 74.05 | -20.9% |
| 38 | Rochester, NY | 84.31 | 76.08 | -20.4% |
| 39 | Nashville-Davidson--Murfreesboro--Franklin, TN | 86.96 | 76.27 | -20.1% |
| 40 | Tampa-St. Petersburg-Clearwater, FL | 82.83 | 69.97 | -19.8% |
| 41 | Phoenix-Mesa-Chandler, AZ | 87.33 | 78.01 | -19.7% |
| 42 | New Orleans-Metairie, LA | 73.64 | 63.49 | -19.5% |
| 43 | Sacramento-Roseville-Folsom, CA | 88.12 | 88.89 | -19.3% |
| 44 | St. Louis, MO-IL | 89.77 | 76.35 | -18.7% |
| 45 | Riverside-San Bernardino-Ontario, CA | 86.3 | 84.37 | -18.2% |
| 46 | Buffalo-Cheektowaga, NY | 81.23 | 75.69 | -17.7% |
| 47 | San Diego-Chula Vista-Carlsbad, CA | 105.18 | 94.52 | -17.6% |
| 48 | Oklahoma City, OK | 71.78 | 70.6 | -16.9% |
| 49 | Portland-Vancouver-Hillsboro, OR-WA | 95.75 | 86.42 | -16.1% |
| 50 | Indianapolis-Carmel-Anderson, IN | 81.5 | 77.05 | -15.2% |
“The rise in new and used car prices has led to a drop in vehicle affordability for consumers,” said Brauer. “That means it’s more important than ever for shoppers to choose vehicles that fit their budget. And while it may be tempting to take out a longer loan to minimize monthly payments, or to make a smaller down payment, in this high-interest environment buyers will end up paying even more in the long run.”
MethodologyiSeeCars calculated its Car Affordability Index for new and used cars monthly from April 2019 to August 2022. The Car Affordability Index was calculated as the ratio between median household income (obtained from the U.S. Census Bureau’s American Community Survey (ACS) one-year estimates and projected using the U.S. Bureau of Labor Statistics’ Earnings reports) and an idealized income for car payments, based on new cars’ and three-year-old used cars’ pricing. An index of 100 means the idealized income for car payments exactly matches household income; values above 100 mean household income is greater than the idealized income for car payments, while values below 100 mean household income is less than the idealized income. Car payments were estimated using Bankrate.com’s published auto loan interest rates and loan terms, and the idealized household income was estimated assuming car payments should be no more than 10% of a household’s annual income. The iSeeCars Car Affordability Index was calculated for new and three-year-old used cars both nationally, by state, and by the Census Bureau’s Metropolitan Statistical Areas (MSAs).
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