The state’s automobile industry suffered one of its worst sales declines in history in 2008, according to new data from the Colorado Automobile Dealers Association.
New-vehicle registrations in Colorado, considered representative of new-vehicle sales, dropped nearly 17 percent in 2008 compared with 2007. Since 2000, the worst previous annual drop was a 7 percent decline in 2003.
The plunge in sales spurred the closure of five of the state’s roughly 270 new- auto dealerships in 2008. In the previous five years, three dealerships closed.
“It’s pretty depressing,” said Tim Jackson, president of the state auto dealers association.
He attributed much of the industry’s struggles to the economic recession. A recovery may hinge on the reach of the federal stimulus package.
“There is a fairly generous incentive toward new-car purchases on writing off the sales-tax expense,” Jackson said. “(A recovery) really depends on how the impact of the economic-stimulus package plays out.”
The incentive would allow new-vehicle buyers to deduct the sales tax from their taxable income for 2009.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
