Hammered by rising fuel prices and declining home prices, sales of new cars and trucks plummeted throughout California in the first quarter, according to data released yesterday.
About 400,000 new cars and trucks were registered between January and March – a 19 percent drop from the same period last year, the California New Car Dealers Association said.
That was the sharpest drop in decades, said Peter Welch, president of the association.
“We may have had something like this in the 1970s, back when we had the oil crisis, but I've never seen anything like it,” he said.
In San Diego County, the drop was similarly dramatic. Slightly more than 28,000 new cars and trucks were sold during the first quarter, an 18 percent drop from the same period last year.
Auto sales have been declining for two years, partly because of the troubled real estate market. As home prices dropped, consumers were no longer able to easily tap into home-equity loans to buy a new car.
Welch said the continuing decline in home prices, tightening credit and rising unemployment have also cut into demand for new cars.
“Unless you're unfortunate enough to be in an accident, buying a car is a discretionary purchase, and that's the first thing that people are cutting back,” he said.
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