Press "Enter" to skip to content

CADA research finds no correlation between dealership showroom closures and Covid-19 cases

Colorado experienced an average of 59 percent sales decline since mid-March when auto showrooms were closed; Colorado dealerships re-opened their doors on Saturday

Denver—According to data collected by the Colorado Automobile Dealers Association (CADA), Colorado’s automotive sales decline has resulted in a large decrease of revenues the state and local governments are receiving in the public treasury.

Data was gathered on the impact of the restrictions in each state on auto sales volume, and the tax revenues generated during Covid-19 versus pre-virus forecasts and historical data.

Colorado experienced an average of 59 percent sales decline since mid-March when auto showrooms were closed. That 59 percent sales decline translated to approximately:

  • $23 million reduced collection of state tax revenues from auto sales.
  • $64 million reduced collection of local tax revenues from auto sales.

CADA reported that those numbers are significant, given Colorado’s looming budget shortfalls.

The association also stated the data demonstrated that auto sales showrooms open in states they are deemed critical does not result in an increase of Covid-19 infections or deaths.

“What’s more, the tax revenues they generate are desperately needed by states supporting large numbers of unemployed workers,” CADA said. “We’re all interested in and supportive of reducing the threat, but dealerships with open showrooms are not contributing to deaths, based on a preponderance of readily available data. Infections are being flattened in those states that have deemed auto sales critical.”

Covid infection health takeaways

States with restrictions that declared automotive dealerships “nonessential” have experienced the highest rates of infections and deaths by large amounts, CADA reported. More than 75 percent of all of the nation’s Covid-19 deaths have come from the 15 states that have completely banned automotive sales in the showroom. Only 25 percent of the deaths are in the remaining 35 states. Infection rates are similar. And fatality rates from Covid-19 deaths in the states with higher outbreaks are also much higher. CADA stated the following:

  • The 15 states with most restrictive auto sales process have the highest number of Covid-19 deaths: nearly 44,000 of the nation’s 59,000 total, or 76 percent.
  • The 35 states that allow some type of auto showroom sales process have the lowest number of Covid-19 deaths: 15,000 of the nation’s 59,000 total, or 24 percent.
  • The seven states with no statewide bans on business have 30 Covid-19 deaths, or .6 percent.
  • National Covid-19 death rates are currently 181.3/million.
  • States that don’t allow showroom sales currently average 236.2/million Covid-19 deaths.
  • States that allow showroom sales currently average 82.3/million Covid-19 deaths.
  • States that have no statewide bans on business have an average of 20/million Covid-19 deaths.
  • States that don’t allow showroom sales have an average of 3,900/million Covid-19 confirmed infections.
  • States that allow showroom sales have an average of 2,000/million Covid-19 confirmed infections.
  • States that have no statewide bans on business have an average of 1,600/million COVID-19 confirmed infections.
  • States that don’t allow showroom sales have an average fatality rate of 6.4 percent to confirmed Covid-19 infections.
  • States that don’t allow showroom sales have an average fatality rate of 6.4 percent to confirmed Covid-19 infections.
  • States that allow showroom sales have an average fatality rate of 4.4 percent confirmed to Covid-19 infections.
  • States that have no statewide bans on business have an average fatality rate of 1.6 percent to confirmed Covid-19 infections.

There appears to be no correlation related to the effectiveness of the restrictions where automotive dealer showrooms were deemed nonessential, CADA concluded.

Comments are closed.

Mission News Theme by Compete Themes.