Vehicles Haven't Been This Affordable Since Disco Ruled

Vehicles Haven't Been This Affordable Since Disco Ruled

The last time buying a vehicle was more affordable than it is today, Ronald Reagan had just assumed the Presidency, ABC's Nightline was a brand-new program and the Empire struck back.

Dallas-based Comerica Bank, now famous for its quarterly Vehicle Affordability Index, said in the second quarter it required 23.1 weeks of median family income to purchase an average-priced new vehicle - the lowest figure since 1980 and a reduction of almost two weeks worth of income compared with a year ago.

Dana Johnson, Comerica's chief economist, says consumers' continuing move to downsize into less-opulent but more fuel-efficient vehicles has driven down the average amount spent on a new vehicle to $23,900, a $700 drop from the first quarter and the lowest figure in three years.

"Consumers also are holding down their monthly payments by extending the average maturity of their car loans to 63.5 months, an increase of about 2 months over the past four quarters," Johnson said.

Bill Visnic:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter