DETROIT, May 10 /PRNewswire-FirstCall/ -- The purchase of an average- priced, new vehicle took 26.2 weeks of median family income in the first quarter, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. The latest reading is down 0.7 weeks from the fourth quarter, but is up 1.4 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,600 in the first quarter, up 5 percent from a year ago, while median family income rose about 3.8 percent.
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"After worsening for three straight quarters, affordability improved a bit in the latest quarter, as consumers bought slightly less expensive vehicles on average and were able to finance their purchases at a modestly reduced interest rate. With consumers struggling with high gasoline prices and upward resets on adjustable rate mortgages, the captive finance subsidiaries of the auto companies apparently offered somewhat more generous financing terms to help sustain sales," said Dana Johnson, Comerica's senior vice president and chief economist.
This report incorporates the latest data on consumer spending on light vehicles and on the terms available on auto loans. The entire history of the index is available upon request from Marsha Halliburton (313-222-4568 or mlhalliburton@comerica.com).
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Detroit, strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people to be successful.
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SOURCE: Comerica Bank
CONTACT: Media, Dana Johnson, Senior Vice President and Chief Economist,
+1-734-930-2401, Data, Marsha Halliburton, Data Analyst, +1-313-222-4568, both
of Comerica Bank
Web site: http://www.comerica.com/
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