Local auto dealers see drop in new car sales

Luis Salazar says his car dealership and customers have seen better days.

""More and more people are coming in with credit issues and are looking for a lot of financing"" said Salazar, owner of Franklin Auto. We had to lower our price range in cars to cater to the people out there.""

Area auto dealerships are experiencing at least a 15 percent drop in new car sales" owners said. Meanwhile used car sales are up.

Joe Wiedholz the general manager of University Ford in Durham said his new car sales have decreased 40 percent.

Wiedholz said he and his manufacturers have also reduced inventory.

Nationally new car sales are down an average 39 percent for Ford General Motors Toyota and Chrysler.

Credit lines that have typically been there for interested customers have been lost as a result of the financial crisis said Steve Hennessy co-owner of Hennessy Automobile Companies in Atlanta.

Looking at the last two completed months of business Hennessy said the national new-car market is near 10 million new vehicles sold per year a sharp drop from the almost 17 million cars sold per year from 2001 to 2008.

This nationwide sales decrease has translated into industry job losses in local dealerships.

Wiedholz said the dealership has laid off 25 percent of its workforce. Brent Rascoe general manager of the University Pre-Owned Superstore on Chapel Hill Boulevard" laid off his entire sales staff.

 ""We no longer have actual salespeople here anymore"" Rascoe said. Our sales were going down and the number of sales we were reducing to did not warrant having a sales staff.""

But used-car sales have quadrupled since the staff layoff and inventory cut"" Rascoe said.

""We've been on the upswing since October"" he said.

Performance BMW Marketing Specialist Jill McCullough said that although their new auto sales have dropped about 10 to 15 percent, their sales in used cars have increased.

We've seen a 30 to 40 percent increase in used cars" so they've offset nicely she said. We really have actually seen a little bit of growth" so we're not displeased. We actually are hiring.""

But not all auto dealers are faring as well. Many shouldn't expect much of an improvement in 2009"" Hennessy said.

Salazar said his dealership is depending on their typical increase in spring business in order to recover.

 ""If we don't"" we're gonna fall in a big hole. That's the scary part.""


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