Some up, some down
Published 12:52 am Saturday, December 3, 2011
Car dealers have wild November
Car sales in November soared to their highest nationwide level since the “Cash for Clunkers” program, with most national analysts contributing the rise to pent-up demand and holiday deals.
But here in Suffolk, the reaction to November sales was more mixed, with dealers on both sides of the spectrum.
“It’s been so-so at best,” said Mike Duman, owner of Mike Duman Auto Sales. “Traffic has not been what we’ve expected it to be. Business has been a little disappointing.”
Duman says his sales were down about 12 percent from last November at his Suffolk store. At his Franklin location, on the other hand, sales went up 15 percent, a number he attributed to several positive jobs announcements there in recent weeks.
Darrell Mayo, sales manager of Starr Motors, also said sales were slow in November — but yet, the dealership still posted a 29-percent increase from last November.
“It’s nothing like what we did four or five years ago,” he said. “People’s credit is not what it used to be. But the last couple years we have been improving over the previous year. We’ve been very fortunate and blessed.”
Mayo credited the increase to hard work by his sales staff and improvements in a number of Chrysler products.
“With the improvements Chrysler’s been giving, a lot of the vehicles have received a lot of awards,” he said. “Consumer Reports placed Jeep Grand Cherokee as their No. 1 best quality domestic vehicle.”
Duman said November typically is a slow month for car sales and that business always picks up in December.
“But unfortunately in today’s economy, things are never as predictable as they used to be,” he said. “It’s very hard to plan for when you’re going to be busy and when you’re not. There’s just no rhyme or reason to it anymore.”
Duman noted that it’s a great time to purchase a vehicle.
“Financing is exceptionally good right now,” he said. “Banks aren’t loaning their money on homes that much, so they have lots of money to lend on vehicles.”
He added that he believes much of the problem is perception.
“What we have to wait for is an extended period of positive news, because what we’re dealing with is a perception problem,” he said. “What we really need for business to increase is obviously for unemployment to come down.”
Over at Starr Motors, Mayo agreed.
“I think people have money; they’re just scared of the economy right now,” he said. “We’ve been doing well, and we’ve been making progress. You be thankful for what you have.”