The purchase of an average-priced new vehicle took 23.1 weeks of median family income in the second quarter, according to the Auto Affordability Index compiled by Comerica Bank.
The latest reading is down 0.9 weeks from the first quarter and 1.9 weeks compared to a year ago. Including finance charges, the total cost of buying an average-priced light vehicle was $27,704 in the second quarter. Last quarter, it took fewer weeks of work to purchase a new car than in any quarter since early 1980.
"With gasoline prices soaring, interest rates on car loans rising, and the economy wobbly, those consumers who are still in the market for a new vehicle are opting for less expensive models," said Dana Johnson, chief economist at Comerica Bank said in a statement. "Excluding finance costs, the average amount spent on a new car dropped another $700 to $23,900 last quarter and is now at its lowest level in three years. Consumers also are holding down their monthly payments by extending the average maturity of their car loans to 63 1/2 months, an increase of about 2 months over the past four quarters."
This report incorporates the latest data on consumer spending on light vehicles and on the terms available on auto loans.
WWJ Newsradio 950 e-newsletters bring automotive, business, technology, entertainment, and home news and information to your desktop. Interested in a complimentary subscription? Please register as a new reader by clicking here.
ADVERTISEMENT
Sponsored Links:
WWJ Newsradio 950 is Detroit's only all-news radio station and is the leader in Detroit radio news. Listen online to WWJ-AM 950 for live, local Detroit news, up-to-the-minute Detroit traffic, Detroit sports, Detroit business and Detroit community information. WWJ Newsradio 950 is an award winning radio station and you can listen online and podcast on demand Detroit news, Detroit Construction Alerts, Detroit School Closings, Winter Survival Guide and learn more about our Business Breakfasts. www.wwj.com.
E-Mail Story
Print Story
