New Car Affordability Remains Goodby Steve Cypher on Saturday, November 17th, 2012
Even auto loan applicants that face credit-related problems ought to know if now might be the right time to finance a new car.
At Auto Credit Express we understand this because for the last two decades we’ve been helping credit-challenged buyers find dealers for their best opportunity at approved auto loans. It’s also the reason that our website’s resource section explains subjects such as guaranteed auto financing as well as today’s topic: the continuing affordability of new cars as reported by Comerica Bank.
Comerica discusses auto affordability
Every quarter Comerica Bank releases a report it calls its “Auto Affordability Index.” The report compares the median family income in the U.S. to the purchase price of an average-priced vehicle to determine how many weeks it would take to cover the cost of a new car. The most current results, according to a press release from Comerica, are as follows:
The purchase and financing of an average-priced new vehicle took 22.9 weeks of median family income in the second quarter of 2012. Consumers on average spent roughly the same on new cars in the second quarter of 2012 compared with the first quarter of 2012.
Affordability remains high
“Auto affordability improved by 0.3 weeks of median family income, but that was not enough to boost auto sales in the second quarter of 2012,” said Robert Dye, Chief Economist at Comerica Bank in Dallas. “Tepid job creation and slow-to-moderate income growth in the second quarter weighed on retail sales, even though interest rates remained near historic lows. Households may be feeling better about unleashing their pent-up demand for automobiles in the third quarter, with August light vehicle sales rising to a 14.5 million unit annual rate.”
As we see it
The bottom line to the report is that new cars continue to be affordable and, if you’ve been waiting on the sidelines for the right moment, that time, at least according to Comerica’s Auto Affordability Index, certainly would seem to be now.
But if bad credit or a loan denial from a traditional lender has been holding you back from buying a car, you should know that Auto Credit Express specializes in matching consumers with poor credit with new car dealers that can offer them their best opportunity at approved auto loans.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online car loans application.