The purchase of an average-price, new vehicle during the second quarter of 2005 took 24.7 weeks of median family income, according to the Auto Affordability Index compiled by Detroit- based Comerica Bank.
This is virtually unchanged from the first quarter and from a year ago, the bank said in a news release. Including finance charges, the total cost of buying a typical light vehicle was $26,315 in the second quarter, up 1.0 percent from the prior quarter and 3.4 percent from a year ago. Median family income rose by virtually the same amounts in percentage terms.
"The affordability of light vehicles has been quite stable over the past ten quarters. Family incomes have been rising faster than vehicle prices, but higher interest rates have increased the cost of financing a new car," according to Dana Johnson, chief economist at Comerica Bank."