Hawai'i's new car and light-truck sales skidded 11 percent in 2007 as consumers slowed purchases amid slowing economic growth.

New vehicle registration data show the number of units sold dropped to 59,861, or the lowest level in five years, according to a report by Auto Outlook Inc., a research firm that tracks sales activity for the Hawaii Automobile Association. The decline was the largest on a percentage basis since 1991.

"Clearly, the economic events that have unfolded over the past several months have not been good news for the Hawaii automotive market," said the report by Auto Outlook, a Malvern, Pa.-based company.

The number of cars sold dropped for a second consecutive year as the market cooled from record sales charted in 2005. Unemployment in the state remains among the lowest in the U.S., but has been creeping upward, while visitor arrivals last year fell for the first time since 2003. Still, car dealers said the market isn't in a free fall.

"If you look at the context of the 1990s there were a number of years in a row where car sales were in the mid-40,000 (unit) range," said Rick Ching, executive vice president at Servco Automotive, one of the state's largest automobile dealers.

"Yes, the drop was sharp, but historically in the mid-1990s we had much worse years."

Auto Outlook forecast car and light-truck sales will fall by 4.1 percent this year to the 57,000-unit range given tight credit markets, rising unemployment, falling home values, high gasoline prices and slower economic growth.

Ching said consumer confidence may have been eroded by a barrage of news about the subprime mortgage crisis and swings in the stock market.

"The sentiment among the dealers is that this level we're at now seems to be a level we're going to be facing for at least a year," he said.

"From a consumer standpoint there's some great product out there," he said. "We're optimistic."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.