In 2000, vehicle sales not only hit a record setting 17.4 million units, but heavy demand did not translate into higher prices. Instead the purchase price of an average new vehicle stabilized during 2000. According to statistics complied by Detroit-based Comerica Bank, during the fourth quarter of 2000 the purchase of an average-priced car required 23.2 weeks of median family income, which matched third quarter 2000 affordability levels. During the fourth quarter a year earlier, a new vehicle purchase took 24.3 weeks of income, Comerica reported.

New vehicle prices in the fourth quarter averaged $22,108, up $277 from third quarter, but down $235, or 1.1 percent from the same quarter a year ago. At the same time median family income rose $575 from the third quarter, up 1.0 percent. The most important advance was the 5.2-percent increase in personal income between fourth quarter 1999 and 2000.

Another contributor to level affordability was the average auto loan rate. Auto-financing rates fell 0.59 percent between the third and fourth quarters. Despite the lower rates customers also sought longer-term loans. Car buyers extended the average maturity on their vehicle loans by an entire month, to 56.7 months, the longest term on record.

Comerica’s Auto Affordability Index is compiled from Commerce Department and Federal Reserve data.