DETROIT, -- The purchase of an average-priced new vehicle took 23.9 weeks of median family income in the first quarter, according to the Auto Affordability Index compiled by Comerica Bank. The latest reading is down 0.6 weeks from the fourth quarter and 1.1 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,389 in the first quarter.
"It's a buyers market and the producers are being forced to offer bigger discounts in one form or another," said Dana Johnson, Chief Economist at Comerica Bank. "Buyers also are holding down their driving costs by choosing smaller, more fuel-efficient cars. That is reflected in the fact that the average amount spent on a new car excluding financing costs was only $24,627, the lowest quarterly average in 2 1/2 years."
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 Dana Johnson (214-828-5970 or djohnson@comerica.com).
Comerica Incorporated 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 $67 billion at March 31, 2008.
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