August 18, 2006
California new-vehicle registrations decline in first half of 2006
Sacramento, California – New light vehicle registrations declined 5.5 per cent in the first six months of 2006 in California, according to a report by the California Motor Car Dealers Association (CMCDA).
The report predicts that new light vehicle registrations, including retail and fleet transactions, will decline overall by 3.1 per cent from 2005 to 2006. The report cites high fuel prices, elevated consumer debt levels and rising interest rates as contributing factors.
“CMCDA does not believe that the market is on the precipice of a pronounced and prolonged decline,” says CMCDA Chairman Bert Boeckmann. “Although we expect a decline this year, registrations are still likely to exceed 2,090,000, which historically is a very good year. In addition, the manufacturers are adept at introducing new products that hit consumer hot buttons, providing a strong motivation for consumers to visit California new-car dealerships.”