New car registrations drop in Colorado in the third quarter

Rising interest rates, rising prices and inventory shortages continue to weigh on auto sales in Colorado, according to a quarterly update from the Colorado Automobile Dealers Association.

Consumers in the state registered 20.8% fewer new cars and trucks in the third quarter and for the first 9 months of the year, registrations fell 14.5% from the same period l last year.

In actual numbers, the state has seen 159,927 new vehicle registrations so far this year, up from 187,009 last year.

On the positive side, Colorado continues to outperform the broader US auto market, which has seen registrations fall 16.9% this year. And pent-up demand remains, which will be met by increased production over the next 12 months and likely price reductions, CADA Chairman Tim Jackson said in comments accompanying the report.

“On the other hand, we expect soaring inflation, high interest rates, rising gasoline prices and weakening consumer confidence to continue to exert pressure. on sales of new vehicles. Historically, we know that an economic downturn dampens new vehicle sales,” Jackson said.

Higher fuel prices this year failed to increase market share against light trucks and SUVs. Light truck registrations fell 13.8% in the first nine months and this segment retains a dominant position of 86.4% of the total vehicle market. New car registrations, on the other hand, fell by 18.8%.

Although car sales are down, consumers are buying more environmentally friendly vehicles. There were 13,959 hybrid vehicle registrations in the first nine months, compared to 12,924 last year, an increase of 8%. Battery electric vehicle registrations rose to 11,458 from 8,120, an increase of 41%. Registrations of plug-in hybrid vehicles rose from 3,165 to 3,803, a gain of 20%.

The brands that have seen an increase in registrations this year in Colorado are BMW, Genesis, Hyundai, Kia, MINI, Maserati and Tesla. Those with the biggest declines were Buick, Chrysler, Dodge, Jaguar, Lincoln, Ram. Toyota and Ford remain the market leaders in Colorado.

So far this year, new vehicle registrations have fallen the most in Southern Colorado, down 20.1%, followed by Northern Colorado, down 15.1%, and the West Slope, down 14, 3%. Metro Denver holds the best, with a drop of 12.3%.

Used car and truck registrations in Colorado were down 11.8% in the first nine months of the year.

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