New car sales still at record levels

By Sean Hao
Advertiser Staff Writer

New autos continued to roll off dealer lots in Hawai'i at a record pace in the first six months of the year.

Through June, new vehicle registrations rose 14.4 percent, to 33,278 from last year, when they smashed a 14-year record in Hawai'i, according to the Hawaii Automotive Dealers Association. Sales are being buoyed by strong job and income growth, continued incentive programs and relatively low interest rates.

The number of new registrations nationwide —where job growth has been slower — fell 0.6 percent, according to the dealer's trade group.

Hawai'i's rebounding tourism sector and booming construction and real estate sectors are fueling demand for new vehicles here, said Dave Rolf, the group's executive director.

"Those construction jobs are high-wage jobs, and the people that are into them tend to buy new cars and new trucks," he said.

The current economic expansion comes in contrast to much of the 1990s. Some current growth is likely a result of pent-up demand from that period, when business activity in Hawai'i was in the doldrums, Rolf said.

The continued growth is welcome, especially on the heels of last year's 17.6 percent rise in new vehicle registrations, Rolf said. "The whole objective was to see if you could sustain growth after last year's juggernaut growth."

Through June, the top five car brands by market share were Toyota, Honda, Nissan, Mazda and Ford. The top light-truck brands were Toyota, Ford, Nissan, Dodge and Chevrolet.

Despite high gasoline prices, auto buyers continue to pick up vehicles without much regard for fuel efficiency, said Joe Hanley, president of Orchid Island Auto Center on the Big Island and president of the Hawaii Automobile Dealers Association. "Gas prices don't seem to be affecting what they're buying," he said.

For the year, new vehicle registrations are forecast to rise about 9.5 percent, Hanley said.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.