Monday, 4 June 2012

Birmingham area auto dealers poised for hot summer

 

Birmingham area auto dealers poised for hot summer

Birmingham area auto dealers are poised for a busy summer, as their sales numbers are rising along with the thermometer. , auto sales have continued their recovery in 2012, buoyed by pent-up demand and improving economic conditions.

While there have been blips along the way -- May U. sales reported on Friday missed some expectations -- industry analysts project a strong summer as gas prices ease and automakers ratchet up the deals to move older inventory and make way for 2013 models.

"We're hearing a lot of optimism out of our customers," said Birmingham auto dealer Bruce Limbaugh.

"Our Birmingham area dealers are optimistic about increased car sales this summer.

According to the Birmingham Auto Dealers Association, new car sales in Jefferson and Shelby counties rose 4.

"The great news for us is Toyota is building all the vehicles in any model line that we could use.

At the Tameron Honda and Hyundai dealerships, the manufacturers are being aggressive with incentives, said Rob Gallick, director of variable operations.

The Memorial Day weekend drew big crowds, he said.

Last month was especially good for Limbaugh Toyota, where sales rose 68 percent over a year ago.

"We are seeing a little bit of an increase," he said.

Across the U.

But Limbaugh said there are a lot of drivers who simply need to replace aging vehicles.

Part of the year-over-year gain is due to low inventory and sales last spring following the March 2011 earthquake and tsunami in Japan that damaged supplier operations and caused a parts shortage and production cuts in the U.

That means trade-in values are up, and several people are taking benefits of that to buy new cars.

He expects more of the same in the next few months as the company tries to move older inventory in preparation for the new model year.

"Honda's been doing some extra incentives, finance-wise and price-wise, so our sales volumes have increased pretty well," said Josh Browning, new car sales manager for Serra Honda.

"The Cash for Clunkers whiplash caught up with us," he said.

Boyles said the 2009 federal government incentives program Cash for Clunkers, which enticed drivers to trade in old cars for new, more fuel-efficient models, took a lot of used cars off the market and has driven up used car values.

At Carl Cannon Chevrolet, Buick, GMC and Cadillac in Jasper, 144 vehicles -- 75 new and 69 used -- were sold during May, said Randy Boyles, general sales manager for the dealership. for Toyota, Honda and other Japanese automakers.

Birmingham area auto dealers poised for hot summer



Trade News selected by Local Linkup on 04/06/2012