Automobiles are more affordable than ever before, technically. According to Comerica Bank’s Auto Affordability Index, it took only 21.5 weeks of median family income to purchase an average-priced vehicle of $26,000. That’s the lowest ratio on record since the index started in 1979. Median family income continued to fall, but the cost of buying a new car fell even more sharply. Average vehicle price is now down $1,700 from the last quarter of 2008.

Part of the decline is due to the recession and consumers cutting back on their spending. In addition, manufacturers are offering incentives and rebates to move vehicles off of dealer lots, so prices are getting slashed. Unfortunately, the lower prices have not been enough to keep the ailing auto industry firing on all cylinders. Chrysler is in Chapter 11 bankruptcy and GM will determine their fate in the coming weeks. Detroit automakers aren’t the only ones feeling the pinch--Toyota recorded its worst sales in decades with an operating loss of $8.6 billion this year.

If you’re in the market for a new car, now is a great time to cash in on the low prices and great deals. For more information on the latest vehicle incentives, see Consumer Reports list of best new car deals.

—Liza Barth