California car dealers in the biggest slump in more than 30 years. Many dealerships have sold half as many cars so far this year, than they did by this time last year. The organization that represents dealerships, The California New Car Dealers Association, says the average dealership’s sales are down 43%. These are all first quarter figures.
Those numbers actually make the sales figures sound better than they really are, here’s how. Last year sales were off 20% from the year before, so what we are really looking at is 43% off 20% off. Ouch! Many car dealerships are struggling to stay open, about 500 have shut down so far.
For consumers in the market for a car, there are great deals out there. That’s the good news. The bad news? Many local governments rely heavily on the sales tax generated by car dealerships. Look for deep cuts in local services because of the car sales slow down.
That's quite a big difference. There are probably many reasons why this had happened. Maybe the car dealers lack advertisement or the cars were just so expensive.
Posted by: Desking tool | 08/08/2011 at 12:49 AM
Competition is one of the reasons why these things happen. I guess it's time to try out something new.
Posted by: Craigslist Dealerships | 09/11/2011 at 01:37 AM