« Chrysler Hosts Financial Expert For Black History Month Celebration |
Main
| 2009 Honda Fit to Make World Debut at New York Auto Show »
February 21, 2008
Average new vehicle cost: $28,715, down 3%
Editor's note: This report on auto affordability suggests our earlier story, on falling car prices is on the right track. If you want to ensure you pay the lowest possible price for a new vehicle, download the Current Auto Rebates report that lists all rebates for all vehicles sold in the U.S.
DETROIT -- The purchase of an average- priced new vehicle took 24.4 weeks of median family income in the fourth quarter, according to the Auto Affordability Index compiled by Comerica Bank.
The latest reading is down 0.5 weeks from the third quarter and 1.8 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $28,715 in the fourth quarter. We estimate that the median family income has increased 4.1 percent from a year ago.
Consumers reacted to the difficult economic environment by spending about $300 less on average for a new car and by extending by 2 months the average term of a car loan to 63 months. A 37 basis point reduction in the interest rate on car loans at finance companies also helped reduce the cost of owning a new car. With the economy weak and interest declining, consumers are likely to find even better deals on new cars over the first half of 2008.
Comerica Incorporated (NYSE:CMA) is a financial services company 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.
To receive this index directly to your email inbox, go to www.comerica.com/econsubscribe to subscribe.
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Comerica Bank
Posted by Frank at February 21, 2008 4:23 PM | Filed under Auto Marketing
| Auto News
| Auto rebates
| Finance
| Industry Statistics