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    Posted August 31, 2008 by
    Location
    Stephens City, Virginia
    Assignment
    Assignment
    This iReport is part of an assignment:
    Car sales: What's driving you?

    More from stacid

    What I have seen in the car business this year...

     

    For those of us dependent on the car business for our livelihood, the popular phrase, "Feast or Famine" accurately describes the "boom and bust" patterns of annual car sales. As 2007 gave way to 2008, we desparingly saw the lagging sales and dry spells as a direct result of rising gas prices. Locally, the end of 2007 and the first few months of 2008 saw some of the lowest auto sales on record. Especially hard hit were the dealerships focused on the big truck and SUV market. For several years the trend in the auto industry was toward bigger, flashier,and better. Incredibly popular were the Hummer, Escalade, and Expedition. Ford, Chevrolet, and GMC needed to redirect their marketing to focus on the smaller, more economical vehicles in their lines. Honda and Toyota were less affected due to the compact and hybrid vehicles in their collections. Gaining popularity in a transforming market is the Hyundai. Although Hyundai has been producing quality, reasonably priced vehicles for quite some time they are just now gaining popularity in the United States. Hyundai offers everything from the compact car to the minivan, and 7-passenger SUV. Like other manufacturers, Hyundai has taken a hit to their SUV's like the Santa Fe and Veracruz. Otherwise, local Hyundai dealerships have seen an increase in sales in the last couple of months. Sales on the Accent and Sonata have increased dramatically. Consumers are parking those gas-guzzling SUVs and purchasing the smaller cars for commuting and eveyday driving. A decreasing interest in SUVs and big trucks has bottomed out the market for those vehicles and trade-in value is minimal. Most people are choosing to park those beasts rather than trading them in. They figure the overall savings in fuel and maintenance overrides the extra car payment.

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