Local car dealers on a roll entering new year

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Tuesday, January 3, 2012 12:17 PM EST

Many area auto dealers believe sales in 2012 will be a year of growth. They cite easier credit, lower interest rates and a pent-up demand for new vehicles caused by the economic slowdown. U.S. auto sales hit a low in 2009,

Buzz Bissonette, general sales manager at Parsons Buick in Plainville, said December was a surprisingly strong month for sales.

“Used cars under $10,000 moved,” he said. “There was a shortage of these cars, they were hard to come by.”

Edmunds car-buying guide lists various pricings for new and used vehicles, and reports that inventories of new cars are being replenished and sales are expanding. As a result, buyers can expect to find a better selection of smaller, more fuel-efficient vehicles.

According to Bissonette, there is interest, in particular, in the new Buick Verono, a luxury, four-cylinder sedan. List price is $22,585, estimated mileage is 21 in the city and 31 highway.

“People who owned foreign cars are coming back to us,” Bissonette said.

Anne Skempris, the owner of Bristol Motor Works, said although sales right now are slow, she recently bought 12 pre-owned German cars.

“It’s pre-tax time, so we’re loading up on the high-end [autos],” she said. “We carry mostly pre-owned late model BMWs and Mercedes.”

She said January through April is prime selling time for Bristol Motor Works.

Skempris said the 2009 Cash for Clunkers program hurt the pre-owned car industry. Dealers complained that taking older cars permanently out of circulation affected supply and demand. Though some of the so-called “clunkers” were turned in and destroyed for environmentally friendly cars, the “clunkers” were still drivable and that left fewer of them.

Andrew Hill, general sales manager at Stephens Toyota of Bristol, said December was his best sales month since April.

“SUVs and vans sales have been brisk,” he said. “You’ve got people who need to make a purchase before the end of the year because of tax reasons. More important, just about every car I get in trade has had more than a 100,000 miles on the odometer. People who were holding onto their cars seem to be feeling more comfortable about the economy.”

With credit easing and interest rates low, motorists in Central Connecticut are beginning to replace the older cars and trucks they drove during the worst of the economic downturn. Still, January is traditionally a tough month for car dealers.

“First, you have severe winter weather,” Hill said. “Last year, we had snow every week in January. Then, too, people are starting to think about their taxes.”

On the plus side, Hill and other auto dealers are encouraged by economic news that’s making buyers more comfortable about spending.

Edmunds reports that forecasts are calling for Gross Domestic Product growth in 2012 in the range of 1.5 to 2 percent, which is higher than annualized GDP growth during the first two quarters of 2011. Low consumer confidence has not prevented the release of at least some pent-up demand.

On Wednesday, U.S. automakers will report sales for 2011. When final figures are calculated, sales of new cars and trucks are expected to reach 12.7 million, up from 11.5 million in 2010 and 10.4 million in 2009, the worst year since 1982.

This tends to support what area car dealers are saying.

Dan Grosso, general sales manager for Modern Motors Dodge Ram and Mazda in Thomaston, said his dealership’s December total sales were the best he has experienced since 2004.

“I think people are spending money again. Weather was a factor,” he said.

Grosso said Mazdas are selling well. This would bear out a trend that emerged in 2011 when gas prices passed $3.50 a gallon and fuel-efficient compact cars started to unseat the midsize sedan as America’s favorite passenger car for the first time in 20 years.

— The Associated Press contributed to this report.


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