Price of Cars Relative to Income Higher, It's The Economy Stupid

The Auto Affordability Index found that it's getting more expensive to buy a new car, as if we needed another reason to consider buying a vintage RWD import instead of something from a dealer's lot. In the third quarter of 2007, it took 24.8 weeks of median family income to buy an average-priced car or truck, compared to just 24.4 weeks in the same quarter of 2006.

Including financing charges, the cost of buying an average-priced light vehicle was $29,024 for the quarter, up about $500 from 3Q06. Over the same period, the estimated median family income increased by only 4.6%. [Freep]