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DALLAS — Comerica Bank contends household budget flexibility
appears to be giving consumers a bit more leeway to make a new-car purchase
despite buyers spending an average of $300 more on a new model.

In its latest Auto Affordability Index report released this
week, Comerica determined the purchase and financing of an average-priced new
vehicle took 23.2 weeks of median family income in the first quarter of this
year.

Analysts also discovered consumers on average spent $300
more — an increase of 1.2 percent — on new models during the first quarter
compared with the fourth quarter of last year.

Comerica chief economist Robert Dye elaborated about the
state of family budgets nowadays.

"Auto affordability was down slightly in the first quarter
of 2012, but remains very high by historical standards, contributing to the
upward trend in auto sales visible from mid-2011 through early 2012" Dye began.

"Job creation has supported slow-to-moderate income growth
while car prices have increased moderately and interest rates have remained
low," he continued. "Households have paid down debt, and that has created space
in household budgets, allowing many families to take advantage of the current
high affordability of new cars. Easing gasoline prices through the current
second quarter will also help auto sales.

"These favorable trends are helping consumers to feel more
confident about unleashing their pent-up demand for automobiles," Dye
concluded.

Reinforcing Dye assessment are the positive sales projections
from analysts at Kelley Blue Book, TrueCar, Edmunds.com and J.D. Power and Associates. Sister
publication Auto Remarketing published reports on May sales expectations here
and here.