Auto Affordability Slid in the Third Quarter, Reports Comerica Bank
Nov 15, 2005
DETROIT, Nov. 15 /PRNewswire-FirstCall/ -- The purchase of an average- priced, new vehicle during the third quarter of 2005 took 26.2 weeks of median family income, according to the Auto Affordability Index compiled by Detroit- based Comerica Bank. The latest reading is up 1.5 weeks from the prior quarter, resulting in the worst reading for affordability in four years. Including finance charges, the total cost of buying an average-priced light vehicle was $27,958 in the second quarter, up 6 percent from a year ago.
"Affordability deteriorated because financing costs rose sharply and because the average consumer reacted to the great deals that were available this fall by spending more, not less, for a new car," according to Dana Johnson, chief economist at Comerica Bank.
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 email@example.com).
Comerica Bank, the largest bank in Michigan, is a subsidiary of Comerica Incorporated (NYSE: CMA). Headquartered in Detroit, Comerica is strategically aligned by the Business Bank, Small Business Banking & Personal Financial Services, and Wealth & Institutional Management. Comerica focuses on relationships, and helping businesses and people be successful. Comerica reported total assets of $54.3 billion at September 30, 2005.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO
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SOURCE: Comerica Bank
CONTACT: Media Contact: Dana Johnson, Senior Vice President and Chief
Economist, +1-734-930-2401, or Data Contact: Marsha Halliburton, Data Analyst,
+1-313-222-4568, both of Comerica Bank
Web site: http://www.comerica.com/