May 10, 2009 (United Press International) -- New cars have become more affordable given their lower price and new incentives offered by U.S. automakers, analysts say.
The Detroit News reported Sunday that vehicle prices fell sharply during the first quarter, the Comerica (NYSE:CMA PRZ) (NYSE:CMA) Bank's Auto Affordability Index indicates.
The survey found that it took 21.5 weeks of median family income to buy a $26,000 new car or truck. During the fourth quarter of 2008, when the average vehicle cost was $1,700 higher, it took 22.8 weeks of income.
The affordability index is at its lowest since the index was started in 1979, said Dana Johnson, Comerica's chief economist.
'It should be no surprise that cars are very affordable now,' Johnson said. 'With weak demand, there are a lot of incentives,' he said.
Johnson said there has been a longtime trend among automakers of not increasing the price of new cars, and the sticker prices have not increased with incomes.
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