DETROIT, Feb. 14 /PRNewswire-FirstCall/ -- The purchase of an average- priced new vehicle during the fourth quarter of 2004 took 20.6 weeks of median family income, before taxes, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. This is 0.2 weeks more affordable than third quarter's 20.8 weeks. Total cost, including financing charges, came to $28,127 in the fourth quarter, 1.8% up from third quarter 2004, and 2.0% above year-earlier levels. Median family income rose 2.6% from the third quarter, and is up 6.4% from a year ago.
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"Although financing costs are beginning to rise, strong competitive pressures are still holding down the all-in costs of buying cars. As a result, auto affordability continued to improve during 2004," according to Dana Johnson, chief economist at Comerica Bank.
Comerica's Auto Affordability Index is compiled from Commerce Department and Federal Reserve data. The next release of this index is due to be published in mid May and will reflect a benchmark revision.
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 $51.8 billion at December 31, 2004.
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Source: Comerica Bank
CONTACT: Dana Johnson, Senior Vice President and Chief Economist of
Comerica Bank, +1-313-222-7848, or +1-800-895-7708
Web site: http://www.comerica.com/
