Local car sales improving, expected to get even better

Posted: Jan 4, 2012 7:59 AM by Bill Halter
Updated: Jan 4, 2012 7:59 AM

United States car sales were way up in 2011 and experts are predicting auto sales will be even better in 2012. Car sales hit a 30 year low in 2009 as unemployment soared and loans became harder to get. As the economy starts to make a comeback, loans have been easier to get, interest rates are low and people need new cars after putting the purchase off for so long.

Automakers report U.S. sales for 2011 on Wednesday but it's expected there will be a ten percent increase in the amount of automobiles sold in 2011 compared to 2010. Some local dealerships have seen sales rise considerably more than that.
"Things are back the way they were. Were up 30 percent from where we were last year. Last month was best month we've had in seven years" says Mullahey Ford fleet manager Kurk Scheer.

Mullahey Ford is in Arroyo Grande and as cars and trucks have been flying out of the lot the dealership has added four more people to its sales staff.

Across the street at Christianson Chevrolet, Mike Thomas says sales were up 32 percent in 2011 because things are now being done differently.
"We were taking some things for granted, now were building a better product. Taking care of our customers and striving for new ideas" says Thomas.

General Motors declared for bankruptcy in 2009, Chevrolet is a subsidiary of General Motors and after being bailed out by the government Chevy has thrived with a restructured model of creating less, but better cars. The Chevy Volt was the 2011 Motor Trend Car of the Year.
"With smaller inventories it's kind of created more of a demand because supply has been low and we don't have to put out as much rebates as much. But that's also going to be beneficial down the road with better resale value" says Thomas.

Ford did not take a government bailout but needed billions of dollars in loans to avoid bankruptcy. Kurk Scheer has been selling cars in San Luis Obispo County for 36 years. Scheer says the Ford product is better than ever and that the reason they're selling more cars isn't because the prices are lower.
"Deals are probably better, rebates are better but the actual price on the window, it's pretty much held steady for the last four years" says Scheer.

Both Scheer and Thomas expect sales to continue to improve in 2012 which could lead to new jobs at those dealerships. The Center for Automotive Research predicts American automakers will add 167,000 jobs during the next three years.