Auto Affordability Hits New Record In Third Quarter 2002, Comerica Reports

DETROIT, Nov. 12, 2002; The purchase of an average- priced new vehicle during the third quarter of 2002 took 19.9 weeks of median family income, before taxes, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. This is a full week less than the first two quarters of the year, which registered 20.9 weeks.

"The lowest overall financing rates ever recorded by the index, coupled with income gains that far outpaced declining new vehicle prices, shoved the index into its most affordable readings since 1978," said David L. Littmann, chief economist at Comerica Bank. "Average financing rates of 4.3 percent and an annual gain of 3.4 percent in family income, versus an average rebated decline of 0.5 percent in vehicle prices, enhanced car sales despite uncertainties that continue to depress consumer confidence and business spending."

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

Comerica Bank, Michigan's oldest and largest bank, is the lead subsidiary of Comerica Incorporated , a multi-state financial services provider headquartered in Detroit, with banking subsidiaries in Michigan, California and Texas, banking operations in Florida, and businesses in several other states.