DETROIT, Aug. 8 /PRNewswire-FirstCall/ -- The purchase of an average- priced, new vehicle took 25.1 weeks of median family income in the second quarter, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. That is the second consecutive decline in our quarterly index, which is down 1.3 weeks from the fourth quarter of 2005 and is at its lowest level in eight quarters. Including finance charges, the total cost of buying an average-priced light vehicle was $27,800 in the second quarter, up 2.8 percent from a year ago, while median family income rose about 4 1/4 percent.
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"The average purchase price of a new vehicle -- not including finance charges -- has dropped $750 or about 3 percent over the past two quarters. With gasoline prices painfully high and financing costs also rising, the typical household reacted by opting for a less expensive model," said Dana Johnson, chief economist at Comerica Bank. "Consumers appear to be spending more cautiously with growth slowing and house prices leveling off."
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 mlhalliburton@comerica.com ).
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Detroit, strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people to be successful.
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Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGOSOURCE: Comerica Bank
CONTACT: Media: Dana Johnson, Senior Vice President and Chief Economist,
+1-734-930-2401, or Data: Marsha Halliburton, Data Analyst, +1-313-222-4568,
both of Comerica Bank
Web site: http://www.comerica.com/econsubscribe
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