Comerica Index: New Vehicles More Affordable During 3rd Quarter 2003

DETROIT, Nov. 17, 2003 -- The purchase of an average- priced new vehicle during the third quarter of 2003 took 19.9 weeks of median family income, before taxes, according to the Auto Affordability Index compiled by Detroit-based Comerica Bank. The third-quarter reading is 0.1 week more affordable than second quarter's 20.0 weeks.

"This level of affordability matches the year-ago third quarter level which represents a 24-year record," said David Littmann, chief economist, at Comerica Bank. "Despite modest increases in auto financing rates and length of loan during the third quarter, rising income, employment, and consumer sentiment should bolster auto sales over the next two quarters."

Total cost for an average-priced new vehicle including financing charges came to $25,523 in the third quarter, 0.5 percent up from second quarter 2003, but 4 percent above year-earlier levels. Median family income rose 1 percent from the second quarter, and is up 3.8 percent from a year ago.

Comerica's Auto Affordability Index is compiled from Commerce Department and Federal Reserve data. The index fully reflects Commerce's data revision since 1999.

Comerica Bank, Michigan's oldest and largest bank, is the lead subsidiary of Comerica Incorporated , a multi-state financial services provider headquartered in Detroit. Comerica reported total assets of $55 billion at Sept. 30, 2003. To receive e-mail alerts of breaking Comerica news, go to www.comerica.com/newsalerts .