New Cars More Affordable than They've Been in Five Years

Attention, shoppers: New cars are more affordable today than they've been in over five years. According to Comerica Bank's Auto Affordability Index, it now takes the average family 21.9 weeks of income to pay off an average-priced vehicle. Sadly, that's not because household income has risen, but because the average cost of a light vehicle has dropped to $25,500.

Comerica's data comes from the third quarter of 2009, which of course included Cash-for-Clunkers. However, while analysts say that C4C did impact prices, auto affordability had been improving long before the federal program kicked in. Customers are now paying less for vehicles than they have since early 2004. [PRNewswire]

Comments

[woollyB:]

Great news, except that cars will get even more affordable since there are no more buyers.

Nov 11 04:34 PM

[Nextel Acce...:]

Have you been to a dealer lately? These cars fro 25k must have AM radios.....

Nov 11 05:00 PM

[sethmcs:]

$25K? I pay cash for clunkers and run them into the ground. Wreck it buy a new clunker. I could have a whole fleet of clunkers for $25K.

Nov 11 06:12 PM

[frobo:]

It's all about monthly payments. Who can pay cash for new cars these days. Compound that with the loss of "Curb Equity" (the instant devaluation once you cross the curb and drive off the dealer lot) and buying a new car isn't worth it. However, if you do buy a new car and pay taxes, it better be a GM because you own the company.

Nov 12 09:41 AM

[Tructor:]

It could have been longer ago, but I recall the average price of a new car 5 years ago was $20,000?
No question, American-made cars are much better than 5 years ago and most easily go 200,000 miles with good maintenance. Dollars per pound, they beat imports in value.

Nov 12 05:15 PM