Recession still felt by LI's new-vehicle market

By TOM INCANTALUPOtom.incantalupo@newsday.comOctober 6, 2010

Long Island's new-vehicle market is getting stronger this year, but like most other components of the economy, it hasn't recovered from the recession.

Figures from the Michigan-based auto information firm R.L. Polk & Co. show that Long Islanders registered more than 102,900 new vehicles this year through July -- 14.5 percent more than a year ago but 13 percent below the market's 2005 peak of 118,400 vehicles in the same seven-month period.

The biggest gainers this year percentagewise are Cadillac and Hyundai.

Cadillac registrations have nearly doubled, to almost 1,700. Hyundai, which has built its reputation on high value for moderate prices, has become one of Long Island's most popular brands, with registrations up almost 55 percent this year through July from the year-ago period, to 6,915 vehicles.

The Ford brand also has been a big gainer locally this year -- as it has been nationally -- with Long Island registrations up by 36 percent through July to more than 6,000 new cars and trucks.

Honda, however, remains Long Islanders' favorite brand based on volume, with registrations up by almost 18 percent this year to more than 16,000 new cars and trucks.

At Honda City in Levittown, owner John Burns Jr. says the Accord and Civic remain his strongest sellers, helped by attractive leasing deals from Honda. "Our lease penetration is up significantly," he said. The Island's second and third most popular makes, Nissan and Toyota, gained 12 percent and 11 percent, respectively.

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Registrations of Chrysler models fell, but the pie was split among fewer dealerships so that Dick Mullen Jr. of Mullen Motors in Southold says his sales are up by about 50 percent.

But, he added, "It's still not back to where it used to be in 2006 and 2007."

Chrysler dealers say the redesigned Grand Cherokee is being well received and they are encouraged by changes for 2011 in the Wrangler SUV and the Sebring, the latter renamed the Chrysler 200.

Some dealers and local industry experts say tight credit is killing many deals for new cars.

"The banks are much, much tougher on getting financing," said Mark Schienberg, president of the Greater New York Automobile Dealers Association. "What they consider a reasonable risk is somebody with an incredibly high credit score."

Brett Saslow, who owns Smith Haven Dodge Chrysler Jeep in St. James and its nearby Mazda and Mitsubishi outlets, agreed. "We're giving back so many deposits because of tight credit," he said.

Schienberg says, however, that credit generally is easier to get from automakers' so-called "captive" finance units such as American Honda Finance Corp.

At Riverhead Toyota, for example, sales manager Angelo Trocchia says Toyota's credit unit is demanding more careful verification of income and other criteria but, at the same time, has loosened the purse strings.

The state Department of Labor says new and used car dealerships employ more than 9,460 people on Long Island.

Pearl Kamer, economist for the Melville-based Long Island Association, says auto sales are tracking with the rest of the retail sector, hampered by cautious consumers and tight credit for big-ticket items.