DETROIT, May 17 /PRNewswire-FirstCall/ -- The purchase of an average- priced new vehicle during the first quarter of 2005 took 24.4 weeks of median family income, before taxes, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. This is 0.1 week more affordable than the fourth quarter reading of 24.5 weeks but 0.8 week less affordable than a year earlier. Total cost, including financing charges, came to $26,663 in the first quarter, up 0.1% from the fourth quarter of 2004, and 7.5% above year-earlier levels. Median family income rose 0.6% from the fourth quarter, and is up 4.0% from a year ago.
"After improving dramatically starting in the mid 1990s, the affordability of cars has been relatively stable since late 2002. Family income gains are still outpacing car prices, but that has been offset by less favorable financing conditions over the past two years," according to Dana Johnson, chief economist at Comerica Bank."
Comerica's Auto Affordability Index is compiled from Commerce Department and Federal Reserve data. This report incorporates revised data and some modifications in the methods used to construct our index. The entire history of the index is shown in a chart available in the Economic section of the http://www.comerica.com/ website.
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 $53.5 billion at March 31, 2005.
CONTACT: Dana Johnson, Senior Vice President and Chief Economist of
Comerica Bank, +1-734-930-2401
