Auto sales in
Hawaii drop 6.7%

Retail purchases of U.S.-
made cars fell 17.2%
in the quarter

Star-Bulletin staff

Retail sales of new automobiles in Hawaii sank 6.7 percent in the third quarter as consumers sat on the sidelines waiting for better deals.

A total of 10,106 new cars and trucks were sold in the three months ending Sept. 30, down from 10,837 in the same period last year, according to quarterly figures prepared for the Hawaii Automobile Dealers Association.

Sales of American-made autos suffered a 17.2 percent drop for the quarter. Meanwhile, import sales, which made up 58 percent of all new-car sales in the islands in the quarter, rose by 2.7 percent.

Trucks, which have been growing in popularity nationally, failed to improve in the local market, with total third-quarter sales down 1.7 percent. Domestic truck models fell 2.9 percent while imports were up a slight 0.7 percent.

Nick Cutter, president of the Cutter Automotive Team, said he "hasn't seen the light at the end of the tunnel yet" but it may come in the fourth quarter as buyers go for deals on 1998 models or for the 1999 models.

"For the new models you won't see a price increase, and in some cases there will be a price decrease," he said.

Cutter surmised that the lower third-quarter figures may be due to a combination of people waiting for new programs, deals and rebates from the factory, and those waiting for new models to come out.

Brian Whiteted, general sales manager at Windward Chrysler Plymouth, added: "Basically, new car sales are off but trucks have done fairly well and vans have sold really well."

The first 1999-model Durango sport utility vehicle sold about a week ago and Whiteted expects more sales as more new 1999 models become available in Hawaii.

He also noted that used car sales have been good, which may reflect buyers' concerns about spending more for a new car in the slow local economy.