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Auto Affordability Best in Six Years Reports Economist
This entry was posted on 5/12/2008 11:10 AM and is filed under Lending.
Detroit, May 9, 2007 /PRNewswire-FirstCall/ — 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).
