CNW Research, the Bandon, Ore.-based company that tracks the auto industry nationwide, has released a gloomy overview of the current state of motor vehicle buying and selling in California.
CNW said its research shows that auto loan delinquency rates are up 28 percent compared with 2007, vehicle repossessions have climbed nearly 15 percent in the same period, the number of Californians who say they intend to buy a new vehicle has dropped below the national average for the first time since 1984 and less than 14 percent of Golden State residents "are capable, able or even slightly willing to make a new-vehicle acquisition," down from more than 30 percent a decade ago.
CNW's study noted that a 30 percent year-to-date new-car sales decline statewide, compared with 2007, has created a situation where "profits are scarce and the land under the business is often worth more than the business. The decision many stores owners are considering is if remaining a dealer is worth the effort."
CNW also speculated that California's current slump might prompt automakers and dealership groups to direct their sales/marketing efforts in other Western states.
"For automakers, heavy reliance on California as a high-volume sales state is ending," CNW said in its Retail Automotive Summary . "While still representing strong volumes that can't be ignored, the need to succeed in the Golden State is diminishing."
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