SalemNews.com, Salem, MA

Local News

February 25, 2012

Car dealers report uptick in Presidents Day sales

Car sales were up at many of the local dealerships this week, following strong sales during Presidents Day weekend, traditionally one of the biggest auto sales weekends of the year.

"We were up 15 percent over last year as a group. All of the stores were extremely busy," said Brian Kelly, who owns eight dealerships in the area, including three in Danvers and one in Beverly.

The Kelly Automotive group sold just shy of 400 vehicles over last weekend, surpassing last year and equaling levels seen prior to the recession, he said.

"We're actually selling just as many cars as we used to sell, and part of that is because there are quite a few less dealerships," Kelly said. "There are less dealers, so more cars are being sold per dealership. There has been a lot of consolidation."

The Lyon-Waugh Auto Group, which owns BMW, Land Rover, Mini and Acura dealerships in Peabody, also reported robust sales over the weekend.

"Depending on the store, we saw increases of between 10 and 30 percent over last year, which averages out to about an 18 percent increase across the group," said Warren Waugh, owner of the Lyon-Waugh Auto Group. "With the good weather, it would have been very disappointing if the numbers weren't better" than last year.

BMW led the pack with a 30 percent increase over last year, and the Mini store was just behind with about a 28 percent increase, Waugh said.

Local dealers said the common theme for customers was fuel efficiency.

"Every last person that came in, the first thing they talk about is fuel economy," said Bob McNeil, the owner of Ipswich Ford. "People are turning in their big station wagons and looking for better fuel economy."

McNeil said the big draw for Ford this year seems to be the Focus, which can hit up to 40 miles per gallon. Not surprisingly, dealers are changing their inventory to match the times.

"If you were to come in here 10 years ago, we would have had eight Expeditions in the backyard. We have zero right now," McNeil said, "because very few people want them."

McNeil said his dealership's sales were also up from last year, but only slightly.

"I've had better Washington's birthdays," he said.

That numbers are headed in the right direction is a product of many factors: a better overall economy, low interest rates, good weather and escalating gas prices driving people toward trade-ins, dealers said.

"Everything was in our favor. There was no excuse if you couldn't sell cars last weekend," Kelly said.

Consumers are also changing the way they shop for cars. The Internet has made it easier to learn all about the cars and price them before they head to the dealer.

"Twenty years ago, people would go to six to 10 dealerships on Presidents weekend. Now they shop 10 dealerships online and narrow it down to two to three to visit," Kelly said. "As a result, there are less shoppers and more buyers."

Nationally, car sales are up over last year, especially for cars that get better gas mileage. Unrest in the Middle East has caused fuel prices to rise in the last couple of months, and some experts are predicting prices could surpass $4 per gallon by Memorial Day.

According to The Wall Street Journal, car sales were up this January over last by a healthy 20 percent. Sales of midsize cars had the biggest gain (26 percent); small cars (21.4 percent) and luxury cars (10.1 percent) were also up over last year. Large cars, however, were down 83.5 percent.

Sales of light-duty trucks had more modest gains of 3.7 percent over last year, while SUVs/crossovers sales were up 1.7 percent nationally.

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