America's Vanishing Cars - Polk Says U.S. Registrations Down in 2009

Washington DC March 16, 2009; The AIADA newsletter reported that in another sign of just how far the U.S. auto industry has fallen, 2009 is likely to be the first year since 1945 when the number of new cars bought will be less than the number of cars turned in to the junk yard.

CNN reports that R.L. Polk is forecasting a drop in total auto registrations of nearly 4 million during the 12-months ending June 30.

There were about 14 million cars taken off the road in the 12 months ending last June. During the same period auto sales fell 7 percent in the face of high gas prices, but still came in at 15.3 million.

But with sales now down to about a 10 million annual sales pace, a decline in the number of vehicles on the road is almost inevitable.

Joe Barker, head of North American sales forecasting at auto consultant CSM, said that with economic uncertainty and credit being as tight as it is, many potential buyers will continue to sit on the sidelines. "The trend we'll likely see for the next 12-18 months is a greater mix of buyers with the necessity to buy, rather than just the desire to buy," he said.