10 reasons why auto sales are dropping (besides the economy and fuel prices)

Think of it as the Carsumer Price Index; new car sales are under pressure from other factors besides fuel prices and economic slowdowns, much like the Consumer Price Index strips out the price of fuel and food and then makes a proclamation about the economy. At least that's the theory that Pinny Cohen posits. Who's Pinny Cohen? As far as we know, he's an average joe with an internet rostrum and a budding web entrepreneurship who makes some salient points. He's also an Autoblog reader and he's got something to say, so we thought we'd share.

If it's not $4/gallon gasoline or economic stagnation that's putting the brakes on car sales, what else could it be? Cohen posits that the better construction of cars these days, a glut of leases that have led to a tsunami of used cars, and online shopping and telecommuting keeping people home are all contributing factors, says Pinny. Something's got to give for consumers, and new car sales seem to be the weakest link. Every automaker will eventually accept these facts, but the question is whether some will have to close up shop in order to realize that it's a brand new day of decreased production. Check the link to read Cohen's thoughts and let us know if you agree or think of more reasons why besides the crappy economy and high gas prices that new vehicle sales are down.

[Source: PinnyCohen.com, Photo: DealerConnection.com]

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