DALLAS, Nov. 10 /PRNewswire-FirstCall/ -- The purchase of an average-priced new vehicle took 24.1 weeks of median family income in the third quarter, according to the Auto Affordability Index compiled by Comerica Bank. The latest reading is up 1.0 week from the second quarter and down 1.1 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,929 in the third quarter, up about $1,200 from the second quarter. Family income barely increased in the latest quarter.
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"The surprise to me was that the average amount of money spent on a new car increased about 5 percent to $25,200 last quarter, excluding financing costs," said Dana Johnson, Chief Economist at Comerica Bank. "In all likelihood, many moderate income buyers pulled out of the market due to the limited availability of financing, thereby temporarily inflating the average amount of money spent on a new car. A sharp drop in loan to value ratios, to the lowest level in three years, was another indication that tight auto financing conditions were a restraint for many potential buyers."
This report incorporates the latest data on consumer spending on light vehicles and on the terms available on auto loans. The history of the index is available upon request from Meaghan Derrick (214-462-6815 or maderrick@comerica.com).
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada, China and Mexico. Comerica reported total assets of $65.2 billion as of September 30, 2008. To receive e-mail alerts of breaking Comerica news, go to http://www.comerica.com/newsalerts.
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SOURCE: Comerica Bank
CONTACT: Media, Dana Johnson, Senior Vice President and Chief Economist,
+1-214-462-6839, djohnson@comerica.com, or Data, Meaghan Derrick, Research
Assistant, +1-214-462-6815, maderrick@comerica.com, both of Comerica Bank
Web site: http://www.comerica.com/
