Print
E-mail
Comment
Local auto sales remain steady despite nationwide hardships
By MATTHEW HUISMAN
The auto industry has taken several hits recently as a result of the recession. Ford, General Motors and Daimler Chrysler have been pleading with Congress and the president for money to sustain their operations. At the same time Toyota Motor Company announced losses for the first time in 70 years.
Area dealerships are buoying the recession well as they try and avoid the same pitfalls of dealers that are going under. Locally, new car sales and used car sales have remained relatively steady.
Randy Barone, owner of Cyber Motor Cars in Kingwood, explained how he maintained his business.
Rather than just stocking random vehicles, Barone uses inventory management software to determine which vehicles will sell and what people want. Additionally, Barone said he is often approached by customers looking for a specific automobile.
Barone uses up-to-date auction information to show people what the cars are selling for and then goes to the auctions looking for the desired car. At the auctions, Barone said he uses a paint meter to determine if any repairs have been done to the vehicle. He backs that up with a free CarFax history report to determine if the vehicle has been in an accident. Armed with this information, Barone is able to tell the difference between lemons and well-maintained cars.
“It helps out people get a good car and gives us a good reputation,” Barone said.
Once Barone obtains the vehicle, he marks up the price $500, cheaper than most big-name dealers who can mark it up a few thousand dollars. This allows him to sell more frequently and create a loyal clientele base.
Barone said that customers in the area prefer imports because of their high consumer ratings.
At Planet Ford in Humble, Mike Hughes, a director for Planet Ford, said that sales are up from month to month. As for the bailout, Hughes said the employees were proud that Ford was not directly involved in the bailout.
“They were not asking for a lot of credit,” Hughes said. “Our employees are pretty happy and sitting in a good position.”
Hughes said that new truck sales were rising as gas prices start to fall.
“With gas prices coming down I don’t have enough trucks,” Hughes said.
The average price of a gallon of gas in the Houston area is $1.49, according to the American Automobile Association. Gasoline spiked to $3.96 a gallon during July. During the same time, truck and sport utility vehicle sales plummeted as consumers valued fuel efficiency over size.
Barone said that even with the low gas prices and the growing demand, he’s not buying up cheap SUVs and trucks because he said he thinks that gas prices will inevitably increase.
Barone said he has been selling 20 to 30 used cars a month.
“We sell more used cars than some dealerships,” Barone said. “And we’re just a dirt lot dealership.”
For now anyway. Barone said that he plans to expand the business, adding a showroom to exhibit exotic cars and motorcycles.
Area dealerships are buoying the recession well as they try and avoid the same pitfalls of dealers that are going under. Locally, new car sales and used car sales have remained relatively steady.
Randy Barone, owner of Cyber Motor Cars in Kingwood, explained how he maintained his business.
Rather than just stocking random vehicles, Barone uses inventory management software to determine which vehicles will sell and what people want. Additionally, Barone said he is often approached by customers looking for a specific automobile.
Barone uses up-to-date auction information to show people what the cars are selling for and then goes to the auctions looking for the desired car. At the auctions, Barone said he uses a paint meter to determine if any repairs have been done to the vehicle. He backs that up with a free CarFax history report to determine if the vehicle has been in an accident. Armed with this information, Barone is able to tell the difference between lemons and well-maintained cars.
“It helps out people get a good car and gives us a good reputation,” Barone said.
Once Barone obtains the vehicle, he marks up the price $500, cheaper than most big-name dealers who can mark it up a few thousand dollars. This allows him to sell more frequently and create a loyal clientele base.
Barone said that customers in the area prefer imports because of their high consumer ratings.
At Planet Ford in Humble, Mike Hughes, a director for Planet Ford, said that sales are up from month to month. As for the bailout, Hughes said the employees were proud that Ford was not directly involved in the bailout.
“They were not asking for a lot of credit,” Hughes said. “Our employees are pretty happy and sitting in a good position.”
Hughes said that new truck sales were rising as gas prices start to fall.
“With gas prices coming down I don’t have enough trucks,” Hughes said.
The average price of a gallon of gas in the Houston area is $1.49, according to the American Automobile Association. Gasoline spiked to $3.96 a gallon during July. During the same time, truck and sport utility vehicle sales plummeted as consumers valued fuel efficiency over size.
Barone said that even with the low gas prices and the growing demand, he’s not buying up cheap SUVs and trucks because he said he thinks that gas prices will inevitably increase.
Barone said he has been selling 20 to 30 used cars a month.
“We sell more used cars than some dealerships,” Barone said. “And we’re just a dirt lot dealership.”
For now anyway. Barone said that he plans to expand the business, adding a showroom to exhibit exotic cars and motorcycles.
Submit a Comment
|
You must be logged in to post a comment.
|
Not yet a registered member?
Click here to become one. Comments to stories and articles on the Web site are not edited or pre-approved before appearing online. Readers posting comments are solely responsible for those comments. Comments must be germane to the story to which they apply. Online comments that are libelous, profane or personally attack another site participant can be reported as abuse using the link provided on each comment. Comments reported as abusive will be reviewed and may be removed from view, as will off-topic comments. BE CIVIL. Individuals continually posting abusive comments to the site may have their registrations revoked. |
