SACRAMENTO — The California Motor Car Dealers Association (CMCDA) announced that registrations of new cars and light trucks in the state totaled approximately 1.17 million during the first three quarters of this year, a decline of 9.3 percent from the same periods a year earlier, according to the California Auto Outlook Third Quarter 2007 Market Report. Rising consumer debt, negligible contributions to savings and accelerated spending over the past several years have combined to put many California households in a highly tenuous financial state. The sub-prime mortgage fallout and strained credit markets are identifiable symptoms and consequences of a consumer sector that has over-spent and under-saved.

Auto Outlook projects that the rate of decline will ease in the fourth quarter of this year, ending 2007 with a total year-over-year decline of 7.5 percent. The Federal Reserve’s interest rate cut has helped steady the credit markets, and perhaps more importantly, supports the economy as the consumer sector recovers.

“Despite the year-over-year decline, registrations continue at historically strong levels,” said Peter Hoffman, CMCDA chairman. “Dealers are re-aligning their inventories to match the changed mix in the market. We expect customers to be attracted by the many new and environmentally-friendly, fuel-efficient vehicles being offered in 2008 and to take advantage of the many aggressive manufacturer programs and incentives being offered.”