Auto Affordability Stable at Yearend, Reports Comerica Bank

    DETROIT, Feb. 8 The purchase of an average-priced new
vehicle during the fourth quarter of 2000 required 23.2 weeks of median family
income, before taxes, according to the Auto Affordability Index compiled by
Detroit-based Comerica Bank.  This matches third quarter affordability levels.
During the fourth quarter a year earlier, a new vehicle purchase took 24.3
weeks of income, Comerica reported.
    New vehicle prices in the fourth quarter averaged $22,108, up $277 from
third quarter, but down $235, or 1.1 percent from the same quarter a year ago.
Median family income rose $575 from the third quarter, up 1.0 percent but
advanced 5.2 percent between fourth quarter 1999 and 2000.
    "Average auto-financing rates fell 0.59 percent between the third and
fourth quarters," said David L. Littmann, chief economist with Comerica Bank.
"Also, customers extended average maturity on their vehicle loans by an entire
month, to 56.7 months, the longest term on record."
    Comerica's Auto Affordability Index is compiled from Commerce Department
and Federal Reserve data.
    Comerica Bank, the oldest and largest bank in Michigan, 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 seven other states.  Comerica also operates banking subsidiaries in Canada
and Mexico.