“Auto sales rise nationally and for dealers” |
| Auto sales rise nationally and for dealers Posted: 04 Jan 2011 01:14 PM PST Automobile sales came crashing down along with the economy in 2008 and 2009, but numbers nationally, statewide and at some local dealerships pulled a U-turn in 2010. And, the increase is expected to continue. "What we see now is definitely a brighter forecast going into 2011," New York State Automobile Dealers Association President Bob Vancavage said. The number of nationwide sales dipped to the 10 million-per-year range during 2008 and 2009 from the 15 million-per-year range, Vancavage said. When total sales are finalized for 2010, the number will be at about 11.5 million, said Paul Taylor, chief economist for the National Automobile Dealers Association. The outlook for 2011 is "stronger, with at least as much improvement in sales as we witnessed in 2010," he said. After down years when the economy fell, the Carbone GM Capital dealership at 5043 Commercial Drive in Yorkville and the Steet-Ponte Ford Lincoln dealership at 5074 Commercial Drive in Yorkville had increased sales for new and used cars in 2010, the sales managers at the dealerships said Monday. Sales of new cars increased 10 percent to 12 percent in 2010 at Carbone GM and are projected to go up another 10 percent to 15 percent this year, Sales Manager Chris Asaro said. The quality of the GM products, improvements to the vehicles, better interest rates and enhanced rebate opportunities for leasing are among the factors that resulted in increased sales, Asaro said. "You're making leasing affordable for more people," he said. Sales of new and used cars at Steet-Ponte Ford Lincoln rose 15 percent to 20 percent in 2010 and should be going up again in 2011, Sales Manager Michael Button said. In addition to the quality and improvements of the Ford and Lincoln products, the dealership also was helped by Ford and Lincoln not taking federal bailout money and becoming comparatively more attractive to automobile buyers, Button said. There also are more lending opportunities now than in recent years, he said. "We had a good year," he said. Economic factors The turnaround in automobile sales means more than just good business for dealerships. It also has many indirect impacts – most helping dealerships stay open and workers avoid losing their jobs. In 2009 and 2010, more than 200 new car dealerships in the state closed, Vancavage said. On average, the dealerships employ 42 people each, he said. "That's a lot of people that were put out of work," he said. "Hopefully, that's going to stabilize now." Vancavage and the local sales managers said the federal Cash for Clunkers program helped dealerships stay afloat in the fall of 2009. But it was the beginning of the U.S. economy's growth in the third quarter of 2009 that has made the greatest difference, Taylor said. Among the signs that the economy is strengthening is that the number of unemployment applicants nationally dropped significantly in December, and the Dow and S&P 500 index closed on Thursday, Dec. 16, at the highest levels since September 2008, Taylor said. Year-end sales December snowstorms in the Northeast could negatively affect the year-end sales for 2010, Taylor said. Typically, the automobile sales market in New York state slows around the holidays, Vancavage said. This time of year, the weather is cold and snowy, and many people want to wait and buy a new car when it gets sunny, he said. Because of that, car dealerships often offer special deals this time of year and release advertisements to attract buyers, Vancavage said. "Now would probably be one of the most excellent times to go ahead and look for a new car," he said. Gary and Patricia Goodman of Newport saw one of those dealership advertisements and spent part of their recent New Year's Eve looking for a new car at the Carbone GM. They weren't sure if they were going to buy the four-door Buick Lacrosse they were looking at, but they liked what they saw and have heard it's a nice car, they said. "And it's a new year," Patricia Goodman said. "So, it's time to buy a new car." This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| You are subscribed to email updates from Content Keyword RSS To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 comments:
Post a Comment