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Good News! Study Shows You Can Afford that New Car

10 May 2000

Autos More Affordable in New Year - Comerica Index

    DETROIT - The purchase of an average-priced new vehicle during the first 
quarter of 2000 required 23.7 weeks of median family income, before taxes, 
according to the Auto Affordability Index compiled by Detroit-based Comerica 
Bank.  This compares with 23.8 weeks of income required for purchase in the 
fourth quarter of 1999.  During the first quarter a year earlier, a new vehicle 
purchase took the same 23.7 weeks of income, Comerica reported.

    The average new vehicle price in the first quarter was $21,009, up 1.4
percent from the year-earlier price of $20,720.

    "Median family income rose 2.9 percent between the first quarters of 1999
and 2000, more than covering the 1.4 percent rise in average vehicle prices,"
said David L. Littmann, chief economist at Comerica Bank.  "Affordability
would have improved more had financing costs not jumped by 0.60 percentage
points over that same 12 month period," Littmann noted.  The Auto
Affordability Index has remained below 24 weeks for five consecutive quarters.

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

    Comerica Bank, the largest bank in Michigan, is a 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.  Comerica 
also operates banking subsidiaries in Canada and Mexico.