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The Honolulu Advertiser
Posted on: Monday, December 29, 2003

Vehicles in state near 1 million

 •  Charts: New car sales on the rise

By Mike Leidemann
Advertiser Transportation Writer

Spurred by a record year for new auto sales, the number of vehicles registered in Hawai'i is likely to reach 1 million for the first time by the end of the year.

An afternoon commute on South Beretania Street during the September bus strike demonstrated the impact of the state's growing dependence on cars.

Eugene Tanner • The Honolulu Advertiser

"We won't know until the final figures are in, but it's certainly possible," said Dennis Kamimura, licensing administrator for the city and county of Honolulu.

Last year, the number of registered motor vehicles statewide — autos, light trucks, SUVs, motorcycles and buses — reached 987,598. That's more than 1.2 vehicles for every one of the state's 814,668 licensed drivers.

While some of the vehicles are in rental and commercial fleets, many apparently are sitting idle in carports and driveways around the state.

The Hawai'i Automobile Dealers Association projected last week that year-end sales of new cars and trucks would reach 60,065. That would easily top the sales record of 57,456 vehicles sold in 1989.

Pent-up demand, factory incentives, low financing rates and increasing confidence in the economy are the primary reasons behind the sales boom, industry officials said.

"You've got a strong local economy, and when you throw in the rebates and financing, it's been a very good year," said Joe Hanley, president of Orchid Island Auto Center on the Big Island.

Those new cars are just one factor pushing the state close to the million mark in motor vehicle registrations. The number has more than doubled since 1974, when there were fewer than 500,000 vehicles registered in the state.

Toyota still tops

Toyotas continue to be the most popular new car in Hawai'i. Here's a look at the 10 best-selling vehicle brands in the third quarter of 2003, listed by market share.

  • Toyota 22.3%
  • Honda 11.6%
  • Ford 11.1%
  • Nissan 10.2%
  • Chevrolet 6.6%
  • Dodge 5.4%
  • Mazda 5.0%
  • Volkswagen 2.2%
  • GMC 2.0%
  • BMW 1.8%

Source: Hawai'i Automobile Dealers Association

City and state officials say the growth in motorcycle sales and commercial vehicles, plus the greater durability of modern cars, have added to a steady push in registered vehicles in the past few years.

"All you have to do is drive around the neighborhoods, and you'll see some houses with three, four or five cars, even when there aren't that many people in the household," Kamimura said. "Maybe they're just waiting for kids to come home from college to drive them at Christmas or in the summer."

If this year's increase matches or exceeds the average of 27,000 additional registrations recorded since 1999, the statewide figure will top 1 million.

"It's very, very probable," said Transportation Department spokesman Scott Ishikawa. "It just goes to show you how much of a car-dependent state we are. That's why we're trying to develop some alternatives."

Until a new rail or better bus system are in place, growth in car sales is expected to continue.

"Cars are one of the first things people buy when the economy starts to turn around," said Dave Rolf, a spokesman for the Hawai'i Automobile Dealers Association. "There's certainly been a pent-up demand that we think will continue for the next several years."

Motorcycle sales also are increasing, and have been "nothing short of phenomenal in the past few years," said Joe Nicolai, owner of JN Chevrolet/Mazda and local dealerships for Harley Davidson, Kawasaki and Vespa motorcycles and scooters. "The two-wheel businesses has grown by leaps and bounds in the last two years."

Many of the new buyers say they are turning to motorcycles precisely because there are too many cars and trucks on the road, Nicolai said.

"Every year, we seem to be getting more and more congested, and some people are saying they'd prefer to drive a motorcycle because of that," he said.

While a record number of cars are coming into the Islands, quite a few are leaving as well.

"Generally speaking, the more people buy new cars, the more people scrap old ones," said Jim Bannigan, head of Hawai'i Metal Recycling Co. "It's not a one-for-one thing, but more like a ripple down a chain": Someone who buys a new car generally sells the old one to someone else, who then sells an even older car, until the oldest car down the line is sent to the recycling yard, Bannigan said.

"We don't have our final numbers yet, but there is definitely a trend here. We've definitely have seen more cars here than last year," he said.

Reach Mike Leidemann at 525-5460 or mleidemann@honoluluadvertiser.com.

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