Auto Affordability Deteriorates Slightly

It took 23.2 weeks of median family income to purchase and finance a new car in the first quarter of 2012, up from a two-year low of 23.1 weeks in the fourth quarter of last year, according to Comerica Bank's Auto Affordability Index.

The Dallas, Tex.-based bank reports that buyers spent an average $300, or 1.2%, more per vehicle in the January-March period.

Comerica says job creation has supported moderate income growth, which is allowing more households to purchase a vehicle at current low interest rates. The bank opines that easing gasoline prices will boost consumer confidence in the months ahead.