Auto Affordability Index

Every quarter, since 1972, Comerica Bank has released a report it calls its “Auto Affordability Index.” The report compares the median family income in the U.S. to the purchase price of an average-priced new vehicle to determine how many weeks it would take to cover the cost of a new car and the results, according to a press release from the bank, are as follows:

The purchase of an average-priced new vehicle took only 21.5 weeks of median family income in the first quarter 2009. This reading is down 1.3 weeks from the prior quarter and is the lowest on record. Median family income continued to fall in the first quarter. However, the total vehicle cost of buying and financing a new car fell more sharply than income, reflecting sharply falling interest rates on car loans. The total cost of buying an average-priced light vehicle fell to $26,000 in the first quarter, down $1,700 from the prior quarter.

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