Car Sales Up in AZ
Car sales are up across the country and Arizona is no exception.
General Motors’ December sales were up 5% over last year, but that was nothing compared to Chrysler and Volkswagon.
Those two car makers saw national sales increase 21 and 35 % respectively.
Here in Arizona, the news is also good.
Knox Ramsey is President of the Valley Auto Dealers Association
He says December sales from his members are up about 16% over the same month last year.
And Ramsey says his dealers sell 70% of the vehicles in the state—mostly in Maricopa County.
Ramsey attributes the growth to two factors.
The availability of credit and that people have been putting off buying cars until the economy improves.
And he says consumers seem to be feeling confident enough to make that big purchase.
“The one economic index that has more relationship to automobile purchases than any other index is the index of consumer sentiment, and confidence has been creeping up," he said.
Ramsey says two of the beneficiaries of the growth in car sales are state and local governments.
He says the sales tax on automobiles represents about 23% of all retail sales tax revenues.