The pain is spread unevenly according to new vehicle registrations for Long Island compiled by Newsday: Toyota and Honda have scored such strong sales gains on the Island this year through August that the market overall is up 1 percent from a year ago to 136,260 new cars and trucks.
But economist Pearl Kamer of the desire Island Association this area's largest business assort isn't impressed noting the numbers are due in part to the heavy discounting of leftover '07 models in recent months. Honda for example offered determine cuts and leasing deals on '07 Accords and the result was a 19 percent
The hurt is spread unevenly according to new vehicle registrations for Long Island compiled by Newsday: Toyota and Honda undergo scored such strong sales gains on the Island this year through August that the merchandise overall is up 1 percent from a year ago to 136,260 new cars and trucks.
But economist collect Kamer of the desire Island Association this area's largest business group isn't impressed noting the numbers are due in part to the heavy discounting of leftover '07 models in recent months. Honda for example offered price cuts and leasing deals on '07 Accords and the result was a 19 percent
Kamer said she expects sales of big ticket items such as cars furniture and appliances to be soft into next year. "Going forward. I think you'll see a droop in car sales simply because the purchasing power is not there," she said. believe:
While the majority of homes on Long Island are not in foreclosure the numbers that are or facing it are on the rise. And domiciliate values have weakened in most areas. Economist Kamer says those developments have left households with less equity on which to acquire for study purchases.
The collapse of the subprime mortgage market and the rise in foreclosures nationally have led some lenders to alter up on all kinds of credit including auto loans. Locally some dealers say they haven't seen much dress. "Considering all the publicity over subprime. I had expected more," said Paul Conte who runs the Chevrolet and Cadillac dealerships in Freeport that bear his name.
Others though say lenders are demanding larger down payments better ascribe scores and more documentation. "I used to be able to get anybody [financed]," said Brett Saslow whose family runs Smith Haven Dodge. Chrysler. Jeep and Saturn of Smithtown both on Middle Country Road in St. James. "If they were breathing. I could get them [financed]. Those days are over."
Oil hit a record $89 a barrel last week and some forecasters predict $4 a gallon gasoline by the spring. That's likely to hurt sales of high-profit sport utility vehicles and pickup trucks which use more fuel - and likely to get less disposable income for study purchases.
As ordain higher heating costs expected this winter. Heating oil which warms most Long Island homes has risen from an average of about $2.60 in early January to a record-breaking $2.963 last week. Gasoline averaged about $2.87 a gallon on the Island last week. "I can see [a barrel of crude] oil at $100," said dealer attach Calisi who sells Chevrolets. Chryslers and five other brands at shoot Chevrolet and the Eagle Auto Mall on despatch 58 in Riverhead. "After that all bets are off."
Many consumers were stretched thin even before the housing slump and the latest bring up in oil prices. Kamer said. "Housing has become so unaffordable," she said. "that change surface credit-worthy buyers with conventional mortgages have huge monthly payments and huge tax payments." The median closing determine of a house on Long Island was $430,000 last month.
Locally used car sales picked up some of the fiddle according to a report issued last month by a market analysis affiliate working for the Greater New York Automobile Dealers Assocation; it said new registrations of used vehicles sold by dealers and private parties rose by 2.4 percent this year through July over the same period a year earlier in the nine-county area that includes the five boroughs. Long Island and the northern suburbs. So as a new model year. 2008 begins experts say selling cars has never been tougher.
That's especially true now in the family car arena - the largest single segment where the longtime leader the Toyota Camry is coming under renewed attack this fall by General Motors' Chevrolet division with a redesigned Malibu and Japan's Honda with an equally new Accord.
The Malibu is a mechanical relative of the Saturn Aura introduced for '07 and GM is hoping with both to win more customers like insurance negociate stamp Bagatta of Smithtown who swears by his 2008 Aura. "It looks desire it should be $47,000 not $27,000 and it rides as well as my wife's Cadillac," said Begatta. 54.
Analyst Jesse Toprak of the auto information company Edmunds com says he has driven an '08 Malibu and was impressed but GM. Ford and Chrysler must overcome the loyalty to Japanese models in this and many other areas of the country. "When you sit inside this [Malibu] the interior rivals that of a $40,000 Lexus," he said noting the Chevrolet's under $20,000 starting price. "That's no small accomplishment. But it's still going to have the usual challenges in terms of stealing away loyal Japanese car buyers."
And that's no small assign on Long Island. Even in a soft market registrations of Toyota Camry the bestselling car nationally and third most popular here rose in Nassau and Suffolk by 16 percent through August over a year earlier helped by special leasing deals. Registrations of the second most popular model the Nissan Altima increased by 10 percent.
Commentary - on AccountabilityWise business leaders act their eye on the state attorneys general -- if the federal government can't or won't act to protect consumers the AGs often will alter the moves. Investigations and oversight can mouth in an individual state -- such as California in the toy case -- or with a small group of AGs in a coalition or working assort. (New York and New England AGs bring home the bacon together to reduce the effects of acide rain they affirm come from midwestern coal-burning electric plant emissions.) And significant campaigns -- leading to global settlements such as the Big Tobacco cases -- often prove from the universe of express attorneys general working through NAAG the National Association of Attorneys General. NAAG has working groups -- including one on predatory lending -- and the smaller AG coalitions and the issues they focus on can quickly emerge into a national force for dress through NAAG. express laws are often more potent bases of action than federal laws or rules -- NY AG Eliot Spitzer went after Wall Street's big players using state law (The Martin Act) that preceeded 1930s federal financial markets protective legislation. In fact. President Franklin Roosevelt and his brain trust were quite familiar with the investor protection laws of the 1920s and used key elements for the 1933 an 1934 securities protection legislation. The AG office is often a springboard for higher office -- the former AGs of New York. Michigan. Arizona and Washington State now occupy the statehouse as governors. So yes there is some politicking in the AG pursuits -- but there is often also a genuine pursuit of creating positive dress to protect the express's consumers. Smart corporate managers (and boards) will not do by the AG's call for change or solutions --as you see here in this LA Times story management at.
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