Auto Affordability Index at record low
Economist sees slight inflation this quarter
Tom Stundza -- Purchasing, 11/10/2009 11:59:24 AM
The purchase and financing of an average-priced new motor
vehicle took 21.9 weeks of median family income in the third quarter of 2009,
according to Comerica Bank's Auto Affordability Index. That is the best reading
on record and compares with 22.1 weeks of median family income in the second
quarter of 2009.
Dana Johnson, chief economist at Comerica Bank says in a statement that median family income was roughly unchanged in the third quarter. However, the average total cost of a light vehicle fell by $800 to $25,500, the lowest since early 2004. The latest drop mostly reflected a 2.4% decline in the average amount spent on a new car, Johnson says.
Additionally, he says, "the drop in the average amount consumers spent on new vehicles in the third quarter...[plus]...the monthly pattern of declines in July and August strongly suggest that the federal rebate program was largely responsible for the improvement in affordability."
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