DETROIT, Aug. 8 /PRNewswire/ -- The purchase of an average-priced new vehicle took 24.6 weeks of median family income in the second quarter, according to the Auto Affordability Index compiled by Comerica Bank. The latest reading is down 0.1 week from the first quarter, and is also down 1.1 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,479 in the second quarter, essentially unchanged from the prior quarter or from a year earlier. We estimate that the median family income has increased 4.2 percent from a year ago.
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"The cost of buying and financing a new light vehicle did not change much in the second quarter," said Dana Johnson, Chief Economist at Comerica Bank. "The average amount spent on a new vehicle fell $50 in the second quarter after dropping $450 in the first. The average financing rate for a car loan edged up 8 basis points to 4.86 percent. With gasoline prices high and house prices weak, the typical consumer continued to opt for relatively affordable cars and light trucks last quarter."
This report incorporates the latest data on consumer spending on light vehicles and on the terms available on auto loans.
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 Contact: Dana Johnson, Senior Vice President and Chief
Economist, +1-734-930-2401, djohnson@comerica.com, or Data Contact: Marsha
Halliburton, Data Analyst, +1-313-222-4568, both of Comerica Bank
Web site: http://www.comerica.com/
