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Dallas-Fort Worth auto sales fall 6.9%

08:51 AM CDT on Friday, April 18, 2008

By TERRY BOX / The Dallas Morning News
tbox@dallasnews.com

New car and truck sales in the Dallas-Fort Worth area fell 6.9 percent in the first quarter, the first decline in several years.

However, the drop surprised few in the auto business. High fuel prices, a depressed housing market and an uncertain economy have battered sales.

In addition, new vehicle sales nationally declined even more, dropping 8.6 percent in the first quarter.

"Part of the problem here is we're bumping into the price of gas, which is causing consumer hesitation," Drew Campbell, president of the New Car Dealers Association of Metropolitan Dallas, said Thursday. "People don't know what to buy because they aren't sure what will happen with gas prices. So they just wait."

First-quarter sales in the area rose 4.5 percent last year.

This year, the largest drops occurred in Tarrant County, where sales fell 14.3 percent, and in Denton County, which was down 9 percent, according to The Freeman Metroplex Recap of new-vehicle sales. Dallas County, in contrast, was flat.

Tarrant and Denton counties have more home construction than Dallas County, and as that sector has slowed, so have new car and truck sales.

"The second quarter should give us a clearer idea how we'll do," Mr. Campbell said. "Once we get a little further into the second quarter, we should be able to see what kind of year we'll have."

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