Best Auto Affordability in 22 Years, Comerica Bank Reports

    DETROIT, May 9 The purchase of an average-priced new
vehicle during the first quarter of 2001 required 22.7 weeks of median family
income, before taxes, according to the Auto Affordability Index compiled by
Detroit-based Comerica Bank.  This figure is a six-tenths (0.6) week
improvement from 23.3 weeks in the final quarter of 2000, and the highest
level of affordability in 22 years, since the 22.6 weeks recorded in the
second quarter of 1979, according to Comerica.

    New vehicle prices in the first quarter averaged $21,882, down 1.24
percent from the fourth quarter of 2000 and only 0.68 percent above first
quarter 2000's level.

    "Intense discounting and incentive programs to reduce inventories probably
influenced individual and fleet purchases during the first quarter," said
David L. Littmann, chief economist with Comerica Bank.  "Also, family income
rose an average 1.44 percent between the fourth and first quarters, with year
over year increases soaring by 5.50 percent."

    Average auto-financing rates were 8.13 percent in the first quarter, up 38
basis points from 7.75 percent in the prior quarter and up 15 basis points
from the year-earlier quarter.  The average maturity of an auto loan stood at
55.1 months in the first quarter 2001 down 1.6 months from the fourth quarter
2000 but a full 2.2 months longer than the same quarter a year ago.

    Comerica's Auto Affordability Index is compiled from Commerce Department
and Federal Reserve data.