Chevrolet Dealer In Southern California

Reality Check:Gas Prices Dent April US Auto Sales, Dealers Say

NEW YORK, April 29 (MNI) - Rocketing gasoline prices slowed the pace of U.S. new vehicle sales in April, according to auto dealers around the country.

Dealers said that with painful reminders of fuel inflation at so many street corners, would-be auto buyers held back a little in the midst of tax season.

Fuel efficiency figured prominently in many vehicle purchases, bruising sales of pickup trucks and larger sport utility vehicles. Less-generous buying incentives in April compared to the first quarter also slowed sales.

Japanese-brand dealers said the nation's devastating March 11 earthquake and resulting tsunami, nuclear crisis and power outages have begun to affect their inventory, and greater impact is expected in May and beyond.

Most Japanese auto production is back online, but not at full capacity. And a roughly one-week national holiday period begins Friday in Japan.

U.S. domestic-brand dealers said their color options are limited in the wake of the quake. Japanese-supplied metallic hues are off the table, though that has had little effect on sales so far, they said.

A Toyota dealer near Trenton, New Jersey said his April new-vehicle business fell short of expectations, though not yet because of inventory.

"High gas prices help Prius sales but put a damper on a lot of car buyers," said Jeff Robinson, general manager of Lawrence Toyota, in Lawrenceville, New Jersey. "It will motivate the guy who owns an F250 to trade out of his truck, but the person who owns an old Camry will stay put for a while."

The latest pump-price spike appears to have put a lid on the nascent return of the "want" buyer to the auto market, he said.

Robinson said he expects to be out of inventory by month-end on the Prius, Toyota's popular gas-electric hybrid hatchback. The rest of his vehicle stock is "okay, for now," but he anticipates shortages to kick in next month and run through July. He noted issues already with certain parts.

He said April new-vehicle sales should match those of March but sink some 20% compared to April 2010. Year-to-date, sales are 5% better than last year, but not quite where he thought they would be.

"It seems like we haven't really kicked into the normal spring market."

On a brighter note, he described "good availability of credit."

A Chevrolet dealer in Wilmington, Delaware said his April sales are about even with those of March and a year ago.

1993 chevrolet 1500

Southern California Auto Insurance – Liability Requirements

As with every state, insurance levels vary depending on location but no matter what, there are three fundamental components of liability coverage.

1. Bodily Injury Liability or BIL

This is what your insurance company pays per person injured in a vehicle accident when you are at fault. Nationally minimums vary anywhere from $10,000 – $50,000. Note: California’s BIL is $15,000.

2. Total Bodily Injury Liability or Total BIL

This is the total of what will be paid out for all persons injured in the auto accident. National minimums are $20,000 – $100,000. Note: The minimum for California’s total BIL is $30,000.

3. Property Damage Liability or PDL

This insurance covers property damage that was sustained by the car accident. Physical damage includes:

* Vehicle damage * Road sign damage, etc.

National minimums go from $5,000 – $25,000. Note: Here the minimum for California’s PDL is $15,000.

Nowadays there are plenty of vehicles costing $50,000 and up so when an automobile accident does occur, the damage is sizeable. While Southern California auto insurance only requires a ratio of 15/30/15 do you really think that it is wise to carry the bare minimum? Absolutely not!

I suggest you pay a few dollars more (it won’t be substantial) to boost your liability coverage up to 100/300/100.

In today’s environment where ambulance attorneys file law suits at the drop of a hat, the extra coverage could mean the difference between adequate coverage and financial ruin. I urge you to not take it lightly.

Tidbit for thought:

Based on the most recent information available – California ranks 7th on the country’s most uninsured drivers list at 18%. Break that down and it is 1 in 5 drivers. Not only does this mean that CA state liability limits are grossly inadequate, but also that you need coverage for uninsured/underinsured motorists.

Joe Goodman is the creator of Car Insurance Performance, an info-rich website that discusses how to find auto insurance that is right for you & your car…at the fairest possible price.

For more detailed info on auto insurance in Southern California, visit us on the web Southern California Auto Insurance.

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