DETROIT, Feb. 8 /PRNewswire-FirstCall/ -- The purchase of an average- priced, new vehicle during the fourth quarter of 2005 took 27.0 weeks of median family income, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. The latest reading is up 0.6 weeks from the prior quarter, resulting in the worst reading for affordability in six years. Including finance charges, the total cost of buying an average-priced light vehicle was $29,200 in the fourth quarter, up 11 percent from a year ago.
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"Affordability has deteriorated over the past year because consumers are buying more expensive cars, financing a larger portion of those purchases, and paying higher interest rates on car loans," 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.
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, Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships, and helping businesses and people be successful. Comerica reported total assets of $53.0 billion at December 31, 2005.
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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/
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