Rental-car cutbacks put dent in auto sales

By Dan Nakaso
Advertiser Staff Writer

New auto sales in Hawai'i fell by 9 percent last year, compared with 2000, as rental car companies bought 7,624 fewer cars from local dealers.

Auto sales for 2001 had been on pace with 2000 — the best year in Hawai'i sales in a decade — but then the Sept. 11 attacks led to a drop in tourism.

The result was an 18 percent decline in purchases by rental car companies, according to Hawai'i Automobile Dealers Association figures released yesterday.

"The rental car market took a big hit," said Jeff Chun, fleet director at Budget rental cars. "Just like everybody else, we experienced some challenges in the market."

Rental car companies account for about 40 percent of new car sales in Hawai'i. Last year they bought 34,092, compared with 41,716 in 2000.

The biggest drop occurred in the fourth quarter when purchases fell nearly 46 percent compared to the same period in 2000. Overall 86,181 new cars and trucks were registered last year, down from 94,734 in 2000.

"In light of 9-11, that's still not very bad at all," said Eric Miyasaki, president and CEO of Nissan Motor Corp. of Hawai'i.

Retail sales have been spurred, in part, by zero-percent financing deals, Miyasaki said.