ATLANTA and NEW YORK -

No matter where the individual might land on the credit spectrum, the financial capability needed to acquire a new vehicle is now at the most difficult point ever seen by experts from Cox Automotive and Moody’s Analytics.

According to the newest Cox Automotive/Moody’s Analytics Vehicle Affordability Index (VAI) released on Monday, the number of median weeks of income needed to purchase the average new vehicle in July increased to 37.4 weeks, establishing a new record. That reading is up from the revised June mark, which analysts recalibrated upwardly to 37.2 weeks.

“With market dynamics leading to record prices and a nine-year low in incentives, new-vehicle affordability declined this spring and has hit record lows in each of the last two months,” analysts said in a new Data Point posted on Monday. “Without improving incomes and favorable interest rates, the decline in affordability would have been even worse July.

Cox Automotive and Moody’s Analytics explained that the factors that drive affordability moved in different directions in July.

“The price paid moved higher and incentives declined, but estimated median incomes increased and the average financing rate declined slightly,” analysts said. “Even with rates slightly lower, the estimated typical monthly payment increased to a record high.

“With the decline in July, new-vehicle affordability was much worse than a year ago when prices were lower and incentives were much higher,” they continued. “Affordability in July was worse than at any month covered by the index data, which dates to January 2012.”

Analysts recapped that the VAI is updated monthly using the latest data from government and industry sources, including key pricing data from Kelley Blue Book. They noted this industry measure is released at mid-month to indicate if the prices paid for new vehicles are moving out of consumers’ financial reach or becoming more affordable over time.