Monday, October 24, 2011
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With new models coming, car dealers optimistic By Tom Incantalupo Newsday
MELVILLE, N.Y. — At the traditional start of a new model year, new car sales are a bright spot in an iffy economy, helping to raise hopes that a second recession will be avoided. Despite some clouds on the economic horizon, sales for all of this year are almost sure to finish above last year’s dismal levels. And many signs suggest further growth next year, although no one is publicly forecasting a return any time soon to pre-recession national sales
levels pushing 17 million new cars and light trucks. “Given that there are still pretty significant limiting factors as far as the economy, we look at 2012 as improved over 2011 but perhaps not significantly improved,” said Alec Gutierrez, a market analyst for the Kelley Blue Book Co. Inc., an auto information provider. Kelley expects sales nationally to total 12.5 million this year and just over 13 million next year. During the recession sales fell as low as 10.5 million, in 2009.
Reasons for optimism include pent-up demand. Some local dealers say the increasingly ratty cars being given as trade-ins suggest that buyers who postponed purchases during the recession are running out of time. “Getting a trade with 100,000 miles or more now is the norm,” said Mark Calisi, who sells Chevrolets, Kias, Mazdas and Volvos at his Eagle Auto Mall in Riverhead, N.Y. The average car and light truck on the road last year was almost 11 years old, compared with nine years for
cars and seven for trucks in 2007, according to the National Automotive Dealers Association. Another reason is improving supplies of Toyotas and Hondas, with the restoration of production interrupted by March’s earthquake and tsunami. At Huntington (N.Y.) Toyota/Scion, general manager Lenny Cafarelli said he has 250 cars allocated to him this month — five times the number in June and July. “I’m going to say that by the first See NEW, Page 2
ToyoTa/MCT
The engine of the 2012 Toyota Camry XLE pulls 178 horsepower and 170 pound-feet of torque out of a 2.5-liter fourcylinder engine with a hearty degree of pep and enthusiasm.
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