DETROIT – Believe it or not, it’s getting less expensive to buy new cars and trucks, contends Comerica Banks’ Auto Affordability Index.
The third quarter Index shows the purchase of an average-priced, new vehicle took 23.6 weeks of median family income in the third quarter, which is now down 2.8 weeks from the fourth quarter of 2005.
Including finance charges, the total cost of buying an average-priced
light vehicle was $26,500 in the third quarter, down 5 percent from a year
ago. Median family income has risen about 5 percent over those same four
quarters.
“Rebates and cut-rate financing reduced the cost of buying a new car
this past quarter,” said Dana Johnson, Chief Economist at Comerica Bank.
“With median family incomes still trending up at a healthy pace, light
vehicles were more affordable last quarter than at anytime since 1980.”
Comerica is a financial services company headquartered in Detroit, with three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management.
