Isle auto sales gain
lifts hopes of dealers

Customers bought about
1,000 more new vehicles in 1997
than in 1996

By Rick Daysog
Star-Bulletin

Hawaii car dealers sold about 1,000 more new vehicles in 1997 than in the previous year, in an encouraging sign for the local auto industry.

A total of 42,487 new cars and trucks were sold on a retail basis last year, a 2.4 percent increase from the previous year's 41,480, according to the Hawaii Automobile Dealers' Association.

Last year's increase, together with 1996's 1 percent sales increase, followed six years of declining sales volume.

"It's a small increase but the trend is good," said Eric Miyasaki, chief executive officer of Nissan Motor Corp. in Hawaii. "The economy is still a little tough . . . but we're optimistic."

New car sales accounted for 34,858 of the 1997 total, up 2.7 percent from 1996's 33,955. Truck sales hit 7,629, a 1.4 percent increase from the prior year's 7,525.

Sales of U.S.-made cars and trucks were up 1.3 percent to 20,924 from 1996's 20,646 while import sales hit 21,563 last year, up 3.5 percent from the prior year's 20,834.

Miyasaki noted that car sales increased in each of the four quarters last year, indicating continued growth for 1998. He noted that there were about 9,800 new car sales during 1997's first quarter, followed by 10,500 sales in the second quarter and about 10,800 during the third quarter.

For the fourth quarter, local car dealers sold 11,286 new cars and trucks, a healthy 10.2 percent increase from 10,240 in 1996's fourth quarter.

Most of the the 1997 increase was fueled by new model introductions and attractive manufacturers' incentive programs that made it more affordable to buy a new car, Miyasaki said.

But the weak isle economy continues to harm new car purchases. During these weak financial times, many potential buyers lack the credit to qualify for new car loans, he said.

Dave Chun, president of Honolulu Ford, said his Ala Moana car dealership experienced a slight decrease in the number of car sales in 1997 after Ford Motor Co. decided to discontinue models like the Thunderbird, Aspire and Aerostar wagon.

He added that plans by Gov. Ben Cayetano's economic revitalization task force to increase the state general excise from 4 percent to 5.35 percent could hurt future car sales by adding hundreds of dollars to the price of new models.

"It is going to increase the price of cars and it will hurt because people don't have the money," Chun said.