Auto Affordability Remains Stable for Second Quarter
The average price of a light vehicle purchased in the second quarter rose by $300 to $26,300, according to Comerica Bank, but it still took only 22.1 weeks of median family income to pay for that vehicle.
Comerica Bank has calculated the cost of vehicle ownership for years and publishes its Auto Affordability Index on a quarterly basis. The latest reading is up 0.3 of a week, a slight deterioration in affordability compared to the prior quarter. Comerica noted, however, that median family income was essentially unchanged in the second quarter and that the total cost of buying and financing a new car rose entirely because consumers chose to buy more expensive cars on average.
Dana Johnson, chief economist at Comerica Bank, said affordability was also helped by the fact that the average rate paid on a car loan was only 3.45 percent last quarter, the lowest level seen in five years. She added that the affordability index very possibly will reach a new best in the third quarter of the year because of the cash-for-clunkers program that is now in place.
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