The Tribune

By NEIL HARTNELL

Tribune Business Editor

BAHAMIAN new car dealers yesterday revealed that the Car Show "bounce" appeared to have returned in 2012, with April's sales up between 83-100 per cent month-over-month compared to March.

But despite enjoying what they believe is the best post-Car Show month in the past three years, Bahamas Motor Dealer Association (BMDA) members were cautious on the long-term implications, telling Tribune Business "it remains to be seen" whether this translates into a long-term growth trend that sets the sector back on the road to pre-recession sales levels.

Rick Lowe, a director and operations manager at Nassau Motor Company (NMC), the Honda and Chevrolet dealer, told this newspaper: "We've seen a little something. I would imagine the others have as well, because the banks don't get aggressive just for us. Hopefully there's more business to come and people have to replace cars now.

"Our sales actually bounced 83 per cent in April over March, and that's a big difference. But we've been selling very low quantities. I'm hopeful that it won't drop back down."

Acknowledging the annual Car Show's impact in stimulating sales and buyer interest, Mr Lowe added: "The Car Show usually gives a little bounce, apart from the last two years, where it was kind of slow. It wasn't the usual big bump we'd get.

"I think this has been the best year in a long time from our perspective. Hopefully, everyone else got a similar bounce. A lot of things play into it - do you have the inventory, etc - but to me it's a lot better."

In previous years, Mr Lowe said Bahamian commercial banks may have been holding back on lending, and consumers staying their hand on purchases, but with some of the economic uncertainty passing he said some buyers probably had "no alternative". Nassau Motor Company, he added, was still hoping to close "a couple more transactions" sparked by the Car Show.

While warning that it was "a little too early" to determine the Car Show's full impact, given that final sales data for BMDA members collectively had yet to be compiled, Andrew Barr, Friendly Ford's sales manager, said April had been "a pretty good month" for his dealership.

"The Car Show was the last weekend in March, the 30-31, and the only time we'll have a real understanding of the results is when we have the sales statistics for April," he added.

"For us, it was a pretty good month. It exceeded expectations. Talking to a couple of the other dealers, they've done well, but we've got to see the figures."

Still, Mr Barr acknowledged: "Based on observations, I would say that April was a very good month, showing positive results as a result of the Car Show.

"The results of the Car Show were very positive for dealers, and our sales were definitely satisfactory given the circumstances we find ourselves in - in a recession, and in a month leading up to a general election.

"There are a lot of factors that impact sales, but from my perspective we had a successful month coming off the back of the Car Show. How significant that is, and whether it continues, remains to be seen."

Mr Barr told Tribune Business that the 2012 Car Show was "much more positive for us" than any of its predecessors over the last three years, and added: "We sold about 30 units this month, compared to 15 the previous month, so for us we've doubled sales.

"That's a very good month, but did not all result from the Car Show. Whether it's sustainable I don't know. In the car industry, we live month-to-month."