Automobile market down, but locals optimistic

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A decline in auto sales – verifiable through industry records – is not seen as cause for concern nationally. The Bayou Region, based on anecdotal reports from a terse industry, is seeing its own decline in sales. But local sales personnel say that while sales are slow they are somewhat steady. Consumers with an interest in buying new cars, sales people say, should keep their options open when working with sales staff. Sometimes, they note, consumers who think they might not get approval for a new auto may do better in that market than when they seek financing for used cars.

Nationwide, sales in September fell 1.49 percent from the same month a year ago, according to monthly computations from industry sources J.D. Power and LMC Automotive.

Retail sales were expected to reach 1,185,500 units in September, while total sales were projected to fall 0.8% to 1,429,100.


Deirdre Borrego, senior vice president and general manager of automotive data and analytics at J.D. Power, indicated the national news is not negative.

“The industry can be viewed through two competing perspectives,” she said. “The first is that in absolute terms, the industry is performing at an exceptional level. While sales have fallen slightly, they are at near-record (dollar) levels and transaction prices are at all-time highs.”

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said the U.S. market continues to show little signs of growth.


“Yet in our opinion the numbers do not reflect a significant weakness or risk,” Schuster said. “The expectation remains for steady volume levels at the topline, despite a pullback of the retail market and increased monthly performance volatility.”

Trucks remained strong, making up

more than 60 percent of new vehicle sales, with occasional rare fluctuations. Competition is fierce, and that may be one reason why local dealers are for the most part unwilling to discuss specifics.


Some, however, agreed to talk about their business in general terms. Barry Songy is general manager at Trapp Chevrolet-Cadillac, a dealership that features two distinct markets for General Motors lines, with Cadillac a long-recognized luxury brand. Chevrolet has prided itself for generations as a maker of family cars – as well as sporty classics like the Corvette and the Camaro.

“We have seen a decline on the Chevrolet,” Songy said. “Cadillac is about the same, down a little but overall it is not too, too bad.”

Songy has noticed that It’s down a little bit but overall not too bad,” Songy said.


Trapp’s business has fairly much remained steady in terms of types of cars consumers choose. There has not been much of a rush to economy models, he notes. Sport utility vehicle customers appear to remain SUV customers, economy customers generally remain economy customers.

Other dealers generally agreed with Songy’s assessment. Some note that what had been steady money in the Bayou Region’s boom petroleum economy, the purchase of fleet autos and especially trucks for businesses, is down. At Southland Dodge managers said the trend they have seen is also a downswing in sales, though that’s not true across all aspects of the business.

At Southland, managers also agreed with suggestions that customers are can be pleasantly surprised at how the idiosyncrasies of the industry, coupled with the various requirements and preferences of banks and finance companies, can result in a deal that the hadn’t expected.


Customers certain they were restricted to the used car market have found themselves – sometimes through a combination dealer incentives and finance company flexibility – driving away in a car just off the assembly line.

“If you think you are not sure you need to come into a dealership because that’s the only way you are ever going to find out,” a salesman at one dealership said. “Often a new car is something companies will be more willing to finance on.”

Trapp’s Songy was in agreement.


“Thera are different circumstances for each type of vehicle,” Songy said. “We will work with anybody to get them the services they require. We have lending sources everywhere.”

Automobile market down, but locals optimisticAutomobile market down, but locals optimistic