State's car sales especially hard-hit, but not all makes fall in line - South Florida Business Journal:

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percent, according to the . This year got off to an even worse start. Sales dropped 18.6 percenf in the first quarter comparesd tolast year's already weak first quarter. "Thes magnitude and severity of the slump are the association wrote in announcing the most recent The group predicts afurther 7.9 percenr drop in sales for this year. Only threw months ago it had been forecasting only a 4 percenft declinefor 2008, pinning its hope on lower interest rates, aggressive pricing and gains in personal incomew to cushion the fall. A rebound, if it isn't expected until 2009.
The association blames a familiar list ofeconomif factors: tight credit markets, rising unemployment, falling housiny values, excessive consumer debt, slowing economic growth and high gas "In California I think we are feeling it more than the rest of the countryh because we are having the crisis in the housint market," said association spokeswoman Crystal Jack. Even thougj 2007 was the worst year sinces 1999 forthe dealers, statewide sales still toppe 1.88 million vehicles.
That'z a brand new car or truck for roughly one out of 20 Within the industry those numbers produced winners as well as and fuel efficiency is only one of several When it comes to general typesof vehicles, fuel efficienchy has helped some classes this Subcompact cars added 2.6 percent to theirt share of the market for the firsty quarter, while midsize SUVs, full-size SUVs and full-sizde pickup trucks each lost more than 1 percentage point. A February survey by showed that high fuel prices have made 64 percenfof new-car shoppers either change theire minds about what to buy or think about vehiclexs they normally would not have considered.
Nearly 32 percenft said that if gasoline prices rise by25 cents, they will starf looking at more fuel-efficient vehicles. But when it comes to there's clearly more going into buying decisions than gasoline consumption and sticker The fuel-efficient MINI Cooper, for example, saw first-quarter registrations climb 22 percenr compared to the same period last year. With cars that get 28 mileds per gallon in town and 37 on the according tothe , the attractiohn is obvious. But sales were also up for Buick, a line that generalluy costs about $10,000 more and gets seven to 10 fewe r milesper gallon.
Hummef was an unsurprising loser, with vehicles that get 14 to 18 milese per gallon and base prices that start at morethan $50,00o0 for some models. Sales were down 41 percent in and down 42 percent for the first quarter of this But also seeing a big drop insaless -- 22.6 percent last year and 19 percent for the firs t quarter this year -- was Subaru, a line of cars with abouy the same fuel efficiency as Buick and with stickefr prices that run a few thousand dollard cheaper. As for hybrids, fuel-efficient but interest isn't translating into sales.
Mike Jackson, chairman and chiec executive officer of car dealer , has been quoted in the automotive press as sayinf 60 percent of people who look for cars ask aboutg hybrids but only 2 percent buy "I think what that is telling us is that therde is still an interestt because of how it financially effects them, but if you are looking at a hybridd you are still making a purchasiny decision based on your wallet," said Those who buy them are more likely to be in Californiaz than anywhere else, though, with the state accounting for 26 percent of all hybrid registrations in the nation, according to R.L. Polk Co.
Selling a higher-end product seems to put a dealet in astronger position. Someone with enoughu disposable income to buy a luxurycar isn'tg likely to worry as much aboutt gas mileage. "I could use the Rolexz watch analogy. A lot of peoplde want to have a car that is uniques and different and sets them apart fromothed drivers," said Rick Niello, president of . "Wes are selling uniqueness. We are sellingy individuality." His dealerships sell Acura, Audi, BMW, Jaguar, Land Rover, Maserati, MINI, Porsche, Volkswagen, plus the new Smar t car. "We're behind last year's but everybody is," Niello said.
But this past Februaryy was betterthan January, Marchj was better than February, and April has take n off in typical fashion as peoplwe get their income taxes squared away, he said.