DETROIT, May 9 /PRNewswire-FirstCall/ -- The purchase of an average-priced new vehicle took 24.7 weeks of median family income in the first quarter, according to the Auto Affordability Index compiled by Comerica Bank. The latest reading is down 1.5 weeks from the fourth quarter, and is also down 0.5 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,200 in the first quarter, up 1.6 percent from a year ago. We estimate that the median family income has increased 3.7 percent from a year ago.
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"Consumers reacted to the sluggish economy, the rebound in gasoline prices, and the softness in home prices by spending about $550 less per car than they did in the fourth quarter," said Dana Johnson, Chief Economist at Comerica Bank. "That, along with the availability of more attractive financing rates, reversed somewhat more than half of the last quarter's deterioration in affordability. With demand soft and the car companies fighting for market share, buyers were able to find pretty attractive deals on new cars in the first quarter."
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 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, or djohnson@comerica.com; or Data Contact, Marsha
Halliburton, Data Analyst, +1-313-222-4568, both of Comerica Bank
Web site: http://www.comerica.com/
