DETROIT, Nov. 9 /PRNewswire-FirstCall/ -- The purchase of an average- priced, new vehicle took 23.6 weeks of median family income in the third quarter, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. That is the third consecutive decline in our quarterly index, which is now down 2.8 weeks from the fourth quarter of 2005. Including finance charges, the total cost of buying an average-priced light vehicle was $26,500 in the third quarter, down 5 percent from a year ago. Median family income has risen about 5 percent over those same four quarters.
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"Rebates and cut-rate financing reduced the cost of buying a new car this past quarter," said Dana Johnson, Chief Economist at Comerica Bank. "With median family incomes still trending up at a healthy pace, light vehicles were more affordable last quarter than at anytime since 1980."
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 shown in the chart below and 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 Contact: Dana Johnson, Senior Vice President and Chief
Economist, +1-734-930-2401, or Data Contact: Marsha Halliburton, Data Analyst,
+1-313-222-4568, both of Comerica Bank
Web site: http://www.comerica.com/
