July 1, 2022

r43dscartex

automotive

New vehicle registrations downshift by a tenth in Colorado this year

The pandemic caused many consumers to focus their spending on goods rather than services, but a big shift back appears to be underway, and that is showing up on auto dealer lots across the state.

New vehicle registrations in the state declined 10% in the first three months of 2022 versus the same period in 2021, while used vehicle registrations dropped 2.3%, according to the Colorado Auto Outlook from the Colorado Automobile Dealers Association. That was below the 14.9% decline in the U.S. which contributed to a decline in real GDP of 1.4% in the first quarter.

“Colorado’s new vehicle market and registrations continue to reflect the country’s sagging economy and the auto industry’s ongoing supply-chain issues,” said CADA president Tim Jackson in the release. “Meanwhile, price increases, higher interest rates, lean supplies, and higher gas prices have put pressure on the overall market.”

Higher prices at the pump are giving a boost to alternative vehicles, Jackson said. The market share of hybrid, plug-in hybrid and electric vehicle registrations has gone from 11.8% of the total in the first quarter of 2021 to 17.4% of registrations in the first quarter of this year. But consumers aren’t shifting away from trucks and SUVs to more efficient sedans in a significant way yet.