Wednesday, July 18, 2012

Funny Auto Numbers Out of California?

The California New Car Dealers Association announced that new vehicle registrations in California increased 27.4 percent during the second quarter of 2012, versus a year earlier. It was the 13th consecutive quarterly increase for California new car sales, which are now expected to exceed 1.5 million this year. For the first half of 2012, California new car sales are up 22.6 percent versus 14.8 percent for the country as a whole.

Is someone stuffing sales into the pipeline, to help the auto industry and Obama look good?

An EPJ reader at one of the largest auto dealers, sends this comment about the CNDA reports:
Weird because our business has been soft...


  1. 2 possible explanations:

    Lots of the money from Bernanke's printing presses comes to California first.

    Lots of tax eaters in California, who think they are on a permanent gravy train, and thus inclined to take out a car loan.

    Related stories from just today:

    Rents in Bay Area up significantly so far this year.

    Cal State Univ administrators vote themselves a raise, at the same time they contemplate how much they will raise tuition and fees if Gov Brown's tax increase referendum is defeated in November.

  2. Buying cars as a haven against taxes etc both by firms and individuals.