Autos at Most Affordable Level in 25 Years During First Quarter, Comerica Reports

DETROIT, May 14, 2004 -- The purchase of an average- priced new vehicle during the first quarter of 2004 took 20.5 weeks of median family income, before taxes, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. This is 0.7 weeks more affordable than fourth quarter's 21.2 weeks. Total cost, including financing charges, came to $26,676 in the first quarter, 1.7 percent down from fourth quarter 2003, and 0.7 percent above year-earlier levels. Median family income rose 1.4 percent from the fourth quarter, and is up 3.2 percent from a year ago.

"With tax refunds and tax cuts, income growth far outpaced incentive-laden new vehicle prices during the first quarter," said David Littmann, chief economist, at Comerica Bank. "Other factors helping lift affordability to the highest levels in a quarter century were lower financing rates and shorter loan maturities."

Comerica's Auto Affordability Index is compiled from Commerce Department and Federal Reserve data. The index fully reflects Commerce's data revision since 1992.

Comerica Bank, Michigan's oldest and largest bank, is the lead subsidiary of Comerica Incorporated , a multi-state financial services provider headquartered in Detroit.