Used car appeal drops

Lease deals on new cars led to a decline in sales of used cars, a dealer says.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Car buyers were cautious last year.

Sales numbers released Wednesday showed a 2 percent drop in new-vehicle sales in Mahoning, Trumbull and Columbiana counties in 2007.

Used-vehicle sales are believed to be down but the extent is uncertain. Figures reported to the Automobile Dealers Association of Eastern Ohio show a 21 percent drop, but car dealers are questioning whether the drop was really that large.

Steve Chos, executive vice president of the association, said he had been assured by his supplier — a company that works with the state to assemble the numbers — that the numbers are correct. But he’s going to check again after receiving dealer complaints. He added that a dealers association in Akron also is questioning its figures.

The percentage of the drop is in question, but it’s clear that demand for used vehicles is down, said car dealer Dave Sweeney.

His family’s Boardman dealerships — Sweeney Buick Pontiac GMC and Sweeney Chevrolet — have about 200 used cars on the lots, down from about 350 a few years ago.

The sales drop in used cars last year was caused by the deals available on new cars, Sweeney said. In some cases, new-car leases are cheaper than payments on buying a used vehicle of the same model, he said.

Chos said that it was good news that new-car sales nearly matched 2006 levels.

“We’re hanging in there,” he said.

He added that dealers are operating in tough economic conditions.

He pointed to the job reductions that have occurred over the past two years at General Motors’ Lordstown complex and Delphi Packard Electric. The two companies have cut 4,400 good-paying, blue-collar jobs.

“It’s going to ultimately have an effect,” Chos said.

Dealers in Mahoning, Trumbull and Columbiana counties sold 28,155 new vehicles in 2007, compared with 28,723 in 2006.

The year ended on a good note, however. Sales last month were 1,811, compared with 1,784 in December 2006.

New-car leases are counted as sales. Last year, dealers recorded 11,782 leases and financed 11,431 sales. The remaining 4,942 sales were cash deals.

Sweeney Buick Pontiac GMC was not only the top new-vehicle dealer in the area, but it also led the nation in sales at General Motors’ dealers that carry those three brands. It has been tops among dealers with those brands for the past three years.

“This is still a great place to do business,” Dave Sweeney said.

The dealership sold 2,424 new vehicles last year, compared with 2,566 in 2006.

shilling@vindy.com