Southeast Missouri car dealerships reporting booming business in 2010

EDITOR'S NOTE: This story has been changed to clarify figures about Ward Hyundai's increase in sales.

Strong car sales this spring are a sign of an economic rebound in progress, according to many local auto dealers.

Sales here are on trend with a nationwide increase in vehicle purchases. U.S. Automakers reported sales leapt 24 percent in March compared with a year earlier, The Associated Press reported Monday.

In March, VanMatre Buick GMC Cadillac had the best month in the company's 30-year history in Cape Girardeau.

"Of course, part of our business is determined by the great deals GM is making right now," owner Mark VanMatre said.

Other dealers also cited incentives such as rebates and zero percent financing for up to five years as a factor contributing to increased sales.

Ward Hyundai saw a 2,500 percent increase in its sales this April compared to April 2009, general manager Dan Hancock said.

"People feel like the economy is more promising," he said. "There's been a lot of pent-up demand."

Sales at Morlan Chrysler have been steadily building since it opened in October. The dealership recently was recognized by the Chrysler Corp. for its first-quarter sales.

"The increase has been across the board," said Jason Todt, general manager at Morlan Chrysler. "Trucks, cars, SUVs have all seen a pretty steep jump."

According to VanMatre, the Cape Girardeau area has fared better than most when it comes to the economy.

"We are in an area of the country that neither experiences the great upturns or dramatic downturns of the economy," he said.

This spring's sales spike comes after some of the auto industry's darkest days in late 2008 and early 2009.

"It was as dismal as I've ever seen our industry in my 25 years in the business," said Bob Neff, dealer at Ford Groves in Cape Girardeau.

"Starting somewhere around mid-point last year, we could see things very slowly, very slightly start to get better," Neff said. His dealership is up significantly the first quarter of this year, compared the first quarter of 2009, he said.

Some dealerships didn't make it through the downturn, including a Saturn dealership in the spot where Morlan Chrysler is now that closed at the end of 2008. Auffenberg Chrysler closed in June, among more than 700 Chrysler dealerships that shut down across the country when the automaker reorganized after filing for bankruptcy. Auffenberg continues to sell Kia automobiles in Cape Girardeau.

"We had the perfect storm of a recession and the credit markets tightening," Neff said. "We now have more options for people with less-than-sterling credit, and that helps open the market back up."

Despite tough economic times, VanMatre, Ford Groves and Ward Hyundai all sold more vehicles during 2009 than the previous year according to sales reports filed by new car dealers with the Missouri Department of Revenue.

The Cash for Clunkers program, officially known as the Car Allowance Rebate System (CARS), helped give some dealers a boost in early 2009.

However, 2009 sales were still half what sales totals were just a few years ago in 2006.

Ford Groves sold 548 new vehicles in 2009, compared to 1,150 new vehicles in 2006.

"At one point we were a 17 million car industry, then dropped down to 9 million. Now they're projecting we'll be in the 11 to 12 million range this year," Neff said.

Dealers expect sales to stay steady throughout 2010.

"Not everybody's out of the woods by any means, but there are a greater percentage of people who are more confident about their jobs than they were 12 or 18 months ago. A lot of people feel like he worst is over," Neff said.

mmillier@semissourian.com

388-3646

Pertinent address:

Ford Groves, 501 N. Kingshighway, Cape Girardeau, MO

Ward Hyundai, 386 Siemers Drive, Cape Girardeau, MO

Morlan Chrysler, 374 Siemers Drive, Cape Girardeau, MO

VanMatre Buick, 511 S. Kingshighway, Cape Girardeau, MO