The purchase of an average-priced, new vehicle in the US took 23.6 weeks of median family income in the third quarter, according to the auto affordability index compiled by Detroit-based Comerica Bank.
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The bank said it was the third consecutive decline in its quarterly index, which is now down 2.8 weeks from the fourth quarter of 2005.
Including finance charges, the total cost of buying an average-priced light vehicle was $US26,500 in the third quarter, down 5% from a year ago.
Median family income has risen about 5% over those same four quarters.
“Rebates and cut-rate financing reduced the cost of buying a new car this past quarter,” said Dana Johnson, chief economist at Comerica Bank.
“With median family incomes still trending up at a healthy pace, light vehicles were more affordable last quarter than at any time since 1980.”
