Auto Affordability Gained One Full Week in 2002, Comerica Reports

    DETROIT, Feb. 12 -- The purchase of an average-
priced new vehicle during the fourth quarter of 2002 took 20.0 weeks of median
family income, before taxes, according to the Auto Affordability Index
compiled by Detroit-based Comerica Bank.  This is 0.1 week less affordable
than third quarter's 24-year record 19.9 weeks, but is one-half week more
affordable than a year earlier.
    "For 2002, the average-priced new vehicle absorbed 20.4 weeks of income,
versus 21.4 weeks in 2001," said David Littmann, chief economist at Comerica
Bank.  "The fractional slippage in auto affordability at year-end 2002
reflects the more modest incentives offered in early fall.  From third to
fourth quarter 2002, incomes gained 1.0 percent, versus a 1.6 percent increase
in average vehicle cost."
    Littmann said average expenditure per vehicle in the fourth quarter, after
rebates, was $21,745 and the average financing rate was 4.4 percent.
    Comerica's Auto Affordability Index is compiled from Commerce Department
and Federal Reserve data.  The index fully reflects the Commerce Department's
data revision since 1999.
    Comerica Bank, Michigan's oldest and largest bank, is the lead subsidiary
of Comerica Incorporated , a multi-state financial services
provider headquartered in Detroit, with banking subsidiaries in Michigan,
California and Texas, banking operations in Florida, and businesses in several
other states.