Auto affordability rose in third quarter
Consumers on average spent $75 less on new cars in the third quarter than they did in the second quarter, says Comerica Bank. The purchase and financing of an average-priced new vehicle took 23.1 weeks of median family income, a 0.2-week improvement.
Income growth through the third quarter was weak, but interest rates on auto loans fell, lifting affordability, said Robert Dye, chief economist at Comerica in Dallas. Sales may ease a bit in coming months, but ample credit availability and a low rate environment remain positives for the auto market.
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