Auto Affordability Down Slightly in First Quarter

The purchase and financing of an average-priced new vehicle took 23.2 weeks of median family income in the first quarter of 2012. Consumers on average spent $300 more (an increase of 1.2 percent) on new cars in the first quarter of 2012 compared with the fourth quarter of 2011.

“Auto affordability was down slightly in the first quarter of 2012, but remains very high by historical standards, contributing to the upward trend in auto sales visible from mid-2011 through early 2012,” said Robert Dye, Chief Economist of Comerica Bank in Dallas. “Job creation has supported slow-to-moderate income growth while car prices have increased moderately and interest rates have remained low. Households have paid down debt, and that has created space in household budgets, allowing many families to take advantage of the current high affordability of new cars. Easing gasoline prices through the current second quarter will also help auto sales. These favorable trends are helping consumers to feel more confident about unleashing their pent-up demand for automobiles.”

Share 'Auto Affordability Down Slightly in First Quarter' on Delicious Share 'Auto Affordability Down Slightly in First Quarter' on Digg Share 'Auto Affordability Down Slightly in First Quarter' on Facebook Share 'Auto Affordability Down Slightly in First Quarter' on Google+ Share 'Auto Affordability Down Slightly in First Quarter' on LinkedIn Share 'Auto Affordability Down Slightly in First Quarter' on Pinterest Share 'Auto Affordability Down Slightly in First Quarter' on reddit Share 'Auto Affordability Down Slightly in First Quarter' on StumbleUpon Share 'Auto Affordability Down Slightly in First Quarter' on Twitter Share 'Auto Affordability Down Slightly in First Quarter' on Add to Bookmarks Share 'Auto Affordability Down Slightly in First Quarter' on Email Share 'Auto Affordability Down Slightly in First Quarter' on Print Friendly
This entry was posted in Indices, United States. Bookmark the permalink.

Comments are closed.