Main Street dealers feel the affects of Wall Street troubles

October 14, 2008

September proved to be a brutal market for car sales, with buyers holding off on purchasing a vehicle due to the turmoil on Wall Street.  Instead, many turned to fantasy shopping, choosing to research exciting niche vehicles as the Dodge Challenger, Chevrolet Corvette and Jeep Wrangler, according to AutoTrader.com's Trend Engine report highlighting new and used vehicle viewing activity on the site for September.  Taken together, these three vehicles make up a very small part of the automotive sales pie, combined representing about 1% of the U.S. market in September 2008.  However, they proved to be very popular among AutoTrader.com visitors, with the new Challenger being the most-viewed new vehicle on the site for the month.
 
"The automotive market is following other segments with a slowdown that will likely last through the end of 2008," said AutoTrader.com President and CEO Chip Perry.  "Those in the industry should remember that consumers cannot push off purchasing a vehicle forever, and we should see an increase in sales once confidence in the economy begins to improve."
 
Half of the 20 most viewed new vehicles on AutoTrader.com for September were either compact or midsize sedans; these cars were joined by 5 pick-up trucks.  Of note is the Dodge Ram, which saw a 10.6% increase in views as dealerships cleared out the remaining 2008 models and began stocking the all-new 2009 edition.  Only one crossover, the Honda CR-V, made the top 20 list, and there were no SUVs.
 
The newest of the 10 cars on list is the Ford Fusion, which recorded a 25.27% jump in views that moved it from 42nd place last year to 19th this year.  All but two of the 10 sedans - the Toyota Camry and Volkswagen Jetta - saw average asking prices rise from September 2007, with the Chevrolet Malibu seeing a 20.71% jump and the Toyota Corolla enjoying a 10.5% increase. 
 
"General consumers who do not need a truck seem to be returning to traditional compact and midsize sedans," continued Perry.  "Trucks - especially pick up trucks - will always have a market, but that market will be more limited to the farmers, contractors and trades people who need them, versus those who have been buying such vehicles purely for personal transportation."
 
Used Vehicle Sales Also See the Effects of the Economy
 
Used vehicles continued to see views slide as many of September's car buyers shifting towards new vehicles to take advantage of the generous incentives available on remaining 2008 model year inventory.  Asking prices for used cars generally stayed steady, while prices for used trucks and SUVs recorded drops ranging from 3.89% for the Toyota Tacoma pick-up to 17.56% for the Dodge Ram pick-up.  Used Ram pick ups were particularly affected by the sizable incentives of upwards of $6,000 per vehicle offered by the Chrysler Corporation on remaining new 2008 models.
 
"While gas prices have decreased, consumers should remember that the long-term expectation is that they will soon not only pass $4 per gallon again, but may even rise well beyond that," said Perry.  "Buyers taking advantage of good deals available on SUVs and trucks now should be sure they can afford to fuel up their vehicle regardless of the priceof gas at the pump."
 
AutoTrader.com is the ultimate automotive marketplace with over 3.5 million vehicle listings.  Using research gathered by studying the shopping habits of over 14 million unique monthly visitors to the site, many of whom are in-market shoppers looking to complete a vehicle purchase within the next 90 days, AutoTrader.com regularly compiles this data to offer insight into current and emerging sales trends in the automobile industry.

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