Dec 10, 2008 - 04:05:26 CST
As the nation watched the federal government debate on lending a hand to the Big Three auto companies, local dealers were watching their sales numbers and inventory levels remain stable."This has probably been the first year that we've actually been able to pick and choose our Toyota inventory exactly how we want it,"said Justin Theel with Cedric Theel Dodge-Toyota-Scion. "With the slowdown across the U.S., we've been able to get anything we want."
The national slowdown in auto sales has barely touched North Dakota and Bismarck-Mandan in particular; by contrast, because nationally, consumers aren't ready to buy new cars, there's more inventory available for consumers who are ready to buy. Those buyers seem to be in Bismarck-Mandan.
Through the end of November, North Dakota recorded an 11 percent increase in motor vehicle excise tax over 2007; state motor vehicle excise tax is collected on newly purchased vehicles. That's a total of $63.8 million collected year to date 2008 compared to $57.15 million in 2007.
"We've had a good year,"said Dan Dwyer with Bismarck Honda-Nissan-Hyundai. "Obviously, the downturn is affecting everyone a little bit. We're doing fine."
Steve Schwan with Schwan GMAuto Center said 2008 has been their third-best year out of the last 11 years; sales at his dealership are down 9 percent over last year, he said, but 2007 was their second-best year in the last decade.
Many dealers are reporting higher inventory numbers than usual due to the availability of product. Theel said their inventory is a little above normal, the trickle-down effect of national manufacturers trying to pull buyers in:Local buyers are reaping the benefits.
Delayne Dvorak, owner of Dvorak Motors, has increased his lot size from about 120 cars this time last year to 154 cars:"We've been buying extra cars, only because the market is so reasonable that we can afford it,"Dvorak said.
It's the economy, dealers say. North Dakota's is still solid, and the area's lending institutions aren't suffering from earlier bad lending practices. Credit is still relatively liquid.
"To be honest with you, we're kind of shielded,"said Bob Kupper with Ressler Chevrolet/Ressler Subaru. "Our local economy is kind of shielded. We're different from the national economy."
Kupper said the dealership experienced a slowdown for a while, but attributed that to local construction; November and December traffic has increased, he said, although they are off a little over last year's numbers on new car sales.
That's the same picture painted by Bill Barth Ford Mazda and Saturn of Bismarck General Manager Ryan Barth:new car sales are a little slower, but have increased even within the last week.
And drivers who may be waiting to trade in their cars are at least using the repair shops more, Barth added, saying service shops nationally have been pretty busy.
Elyse Puklich with Stan Puklich Chevrolet said their service department is seeing much increased activity.
"Car sales are not exactly where we'd like to see them, but repairs are doing really well,"she said.
The manager at Eide Ford declined comment, and the owner at Corwin-Churchill was unavailable when contacted.
What happens in the next six to eight months could have an impact on area dealers, however, whether it be consumer confidence or tightened expenses.
Bob Lamp with the Auto Dealers Association of North Dakota is optimistic, but noted that falling agriculture, commodity and oil prices have a direct impact on the state's economy, which could impact the dealers. And every dealer is watching their overhead costs to make sure they're working as efficiently as possible as the government hammers out any plans to save the Big Three:Ford, Chrysler and General Motors.
Barth said they're watching their inventory levels to make sure they're not overstocked, and have cut back on advertising. And Puklich said they've made minor expense changes around the dealership.
Last week, the Big Three reported more than a 30 percent drop in sales in November, a 26-year low. All three companies have submitted restructuring plans in an effort to receive federal loans they say are necessary to keep the industry afloat.
"If we had a crystal ball to see what was in there, it'd really be nice,"said Schwan. "Expense control is really going to be key, and just watching your overhead."
(Reach reporter Crystal R. Reid at 250-8261 or crystal.reid@;bismarcktribune.com.)
Dubbles wrote on Dec 14, 2008 6:21 AM:
nd wrote on Dec 10, 2008 9:56 PM:
No one said we were shielded!!
They said that we may not have the intensity of the problems the rest of the country is facing because we are more conservative.
Also, they specifically said ND...not Bismarck. So, the Bismarck arrogance statement was not necessary either! "
babyt wrote on Dec 10, 2008 9:51 PM:
Mitch wrote on Dec 10, 2008 8:49 PM:
Smart gal wrote on Dec 10, 2008 3:05 PM:
Smart Guy wrote on Dec 10, 2008 1:13 PM:
Florida gal wrote on Dec 10, 2008 7:25 AM:
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