DALLAS — The purchase and financing of an average-priced new vehicle took 22.9 weeks of median family income in the second quarter of 2012, according to Comerica Bank’s Auto Affordability Index. Consumers on average spent roughly the same amount on new cars in the second quarter of 2012 as they did in the first quarter.
“Auto affordability improved by 0.3 weeks of median family income, but that was not enough to boost auto sales in the second quarter of 2012,” said Robert Dye, Chief Economist at Comerica Bank in Dallas. “Tepid job creation and slow-to-moderate income growth in the second quarter weighed on retail sales, even though interest rates remained near historic lows. Households may be feeling better about unleashing their pent-up demand for automobiles in the third quarter, with August light vehicle sales rising to a 14.5 million unit annual rate.”
This report incorporates the latest data on consumer spending on light vehicles and on the terms available on auto loans. The full history of the Index is available upon request. Some historical data is in the process of being revised by the data sources and, as a result, revisions to the auto affordability series are expected in the months ahead.
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Follow Comerica Chief Economist Robert Dye on Twitter at @Comerica_Econ.
SOURCE Comerica Bank