The showroom stalls: Inside Colorado's 18.4% auto sales drop

Following years of severe inventory shortages, vehicles are finally returning to dealership lots—but buyers are largely staying home. 9NEWS Business Expert Ryan Frazier spoke with Matthew Groves, President and CEO of the Colorado Auto Dealers Association (CADA), to diagnose the sudden stall in the state’s automotive market.

The Q1 Collapse: According to CADA reporting, total vehicle sales in Colorado dropped a staggering 18.4% in the first quarter of 2026. This local slump mirrors a broader national cooling trend, with U.S. auto sales forecasted to drop to 16 million this year, down from 17 million the previous year.

The Affordability Crisis: Consumer hesitation is heavily driven by price tags. With the average cost of a new vehicle hovering around $50,000, and interest rates remaining a factor, many everyday Coloradans are simply being priced out of the new car market.

The EV Incentive Cliff: The electric vehicle market is facing a severe reality check as government subsidies vanish. The total depletion of the federal EV tax credit, combined with Colorado slashing its base state incentive from $3,500 down to $750, has resulted in significant sales drops for EV-reliant brands like Tesla, VW, and Nissan.

Hybrid and Truck Dominance: Conversely, automakers that hedged their operational bets are thriving. Toyota is currently commanding the market by leaning heavily into traditional hybrids, which maintain a strong 16.8% market share. Furthermore, despite ongoing concerns over gas prices, the top three selling vehicles in Colorado remain the Ford F-150, Toyota Tacoma, and Ram 1500.