Cash for Clunkers Result in Autos Being the Most Affordable in 29 Years

The recession doesn't always mean bad news for everyone especially if you're in the market for a new ride. According to the Auto Affordability Index complied by Comerica Bank, for the third consecutive quarter, consumers continued to pay less for a new vehicle.
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The government-run Cash for Clunkers program in September, which provided consumers up to $4,500 in trade allowance, help to drive car prices down during the third quarter. In fact, as a result of the government stepping in to stimulate new vehicle sales, the total cost of buying a new vehicle fell 5 % from a year ago to $26,500 in the third quarter.
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So, while many critics complained incessantly about the government's program, the incentive obviously made vehicles more affordable. The chief economist for Comerica Bank found that light vehicles were more affordable last quarter than at anytime since 1980, when records were first maintained.