Californian Car Buyers Catch Up

Retail sales of new vehicles in California have bounced back following Governor Arnold Schwarzenegger's repeal of the vehicle license fee increase on Nov. 17, his first day in office, according to transaction data from the Power Information Network (PIN), LLC, an affiliate of J.D. Power and Associates.

The Department of Motor Vehicles began charging California drivers who registered their vehicles on or after Oct. 1, 2003 up to 2% of the vehicle's value, amounting to as much as three times the amount of the previous fees. Retail sales of new vehicles dropped dramatically in October and early November.

In keeping with a campaign promise, the new governor rescinded the fee hike immediately, and the Department now says that vehicle owners who paid the full fee will automatically receive a refund by mail. Overall sales jumped 19% and luxury sales 30% in the last six weeks of 2003 compared with the period from October 1st through November 16th.

As well as being encouraged by the repeal, buyers may have been preoccupied with the election itself and with major wildfires, according to Tom Libby, director of industry analysis at PIN: 'Since that time, we've seen sales rebound significantly, to the point where they're on par with the other 49 states'.

Meanwhile in the rest of the US, total new-vehicle sales dropped 2% and luxury vehicle deliveries 1%. Retail sales volume changes are based on sales volumes per selling day within each month.

PIN's findings are based on retail data from more than 6,000 automotive franchises in 26 major US markets. The company's Web site is at www.powerinfonet.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

• JD Power and Associates (UK)
• All news