The average new vehicle now costs nearly what a typical American makes in a year — but few in the industry seem all that concerned.
That average transaction price reached a May record of $45,502, according to J.D. Power. Cox Automotive and Moody's Analytics put the cost of acquiring a new vehicle in May even higher — $55,821 when including factors such as financing, a figure that represented 41.3 weeks of the $70,284 U.S. median household income.
"It's never been higher," Cox Automotive Chief Economist Jonathan Smoke told Automotive News. "It looks horrible."
Yet when speaking to dealers, "you really don't hear affordability as issues," Smoke said.