Advertisement - Click to support our sponsors.

Hawaii auto sales
zoom 39 percent

Import model purchases hogged
the road in the 1st quarter as the
economy continued its recovery

By Rick Daysog
Star-Bulletin

Hawaii's rebounding economy gave local car dealerships a jump-start during the first quarter as sales of new cars and trucks rose 38.8 percent.

A total of 13,332 new cars and trucks were registered during the first three months of this year, up from first quarter 1999's 9,604, according to a report by the Hawaii Automobile Dealers' Association.

Sales of import models led the way, soaring 53.8 percent to 8,589 during the recent first quarter from 5,584 in the year-earlier period, according to the report which was released yesterday. Sales of U.S.-made cars sales, meanwhile, jumped 18 percent to 4,743 during the three-months ending March 31, up from 4,020 in 1999's first quarter.

Paul Brewbaker, chief economist at the Bank of Hawaii, said the car sales figures are another sign that the state's economic recovery is under way. While Hawaii's economy, as measured by personal income and job growth, may be rising at low single-digit percentage rates, capital expenditures by local consumers have been up significantly during recent months, he said.

For instance, the number of isle homes and condos sold is up 20 percent during the first four months this year, he said.

"There's a lot of signs of confidence that the economy is coming back," Brewbaker said.

Eric Miyasaki, chief executive officer of Nissan Motor Corp. in Hawaii, said that the introduction of new models is also playing a role in the car-sales surge. He noted that sales at local Nissan dealerships have benefited from the introduction of new Xterra, Maxima and Sentra models.

Mike McKenna, owner of Mike McKenna's Windward Ford and Windward Volkswagen/Mazda, said the sales rebound is driven by financing as well as by products.

The new Ford models as well as the redesigned Volkswagen Beetle and Passat have boosted sales at his Kailua dealerships while favorable financing terms offered by manufacturers, including General Motors Corp. and Ford Motor Co., have made it easier to buy, McKenna said.

"The market is definitely up but the big question is how long can it sustain itself," Miyasaki added.