Orange County? auto sales market is projected to hit bottom this year with a 21% decline from 2008, according to the Costa Mesa-based Orange County Automobile Dealers Association? first-quarter report.
Auto sales even could start growing on a yearly basis in the fourth quarter, according to the report.
For the first quarter, new auto registrations? barometer of sales?ell 37% from a year earlier. That was on par with the nation? 38% drop in first-quarter sales.
In March, auto registrations fell 34% from a year earlier to 7,957 autos, an improvement on a steeper 46% yearly drop in February.
Recovery is predicted to be gradual because households still are whittling down debt and boosting savings.
Credit also will play a part, as more strict credit standards are expected to stay around.
On the upside, so-called ?ent-up demand,?created by people who are putting off new auto purchases, is reaching record levels, the report said.
Looking out five years, the auto report is optimistic. It says that annual unit sales in the U.S. could rebound to its former level of 16 million or higher. It now is below 10 million.
Locally, Hyundai, Jaguar, Kia, Mini Cooper, Suzuki and Smart cars were the only brands that saw gains in first-quarter registrations.
Hyundai boosted its registrations to 929 autos, up 13% from a year earlier; Mini climbed 9% to 269 autos; Kia rose 13% to 178 autos; Suzuki was up 83% to 176 autos; Jaguar was up 57% to 99 autos; and Smart had 12 registrations, up 140%.
Of the luxury brands, Lexus took a hit. It was down 40% from a year earlier to 1,240 autos in the first quarter. BMW was down 27% to 1,311. Mercedes-Benz was down 28% to 1,606 autos.
Top Online Dealers
Two local dealers landed on Ward? Dealer e-Dealer 100? list of top online dealers?or 2009.
They are: No. 41 Power Toyota Irvine and No. 99 Power Toyota Buena Park.
The list is ranked by online sales.
An online sale doesn? necessarily have to be completed online?t can be a sale that started with an online referral or through the dealer? Web site.
Some dealers now use social networking sites such as Twitter and Facebook to sell autos.
The top e-dealer, Suburban Collection of Troy, Mich., sold 8,148 new and used autos online. Power Toyota Irvine sold 1,517. Power Toyota Buena Park sold 942.
Retail Push
The city of Lake Forest is taking an active role in promoting its shopping centers to local residents, stressing that local dollars not only keep stores in business, but also support services, such as police.
Cities get much of their revenue from sales tax, especially auto sales, which have dropped considerably throughout the county.
Two dealerships recently closed in Lake Forest.
The city? Shop and Dine Lake Forest marketing program promotes shopping through its community newsletter and at a dedicated Web site, where it lists retailers and restaurants.
The program is intended to make local residents aware of the city? various stores and restaurants, said Jessica Gonzales, economic development specialist for the city.
In 2006, the city completed a makeover of a stretch of land from the San Diego (I-5) Freeway to Muirlands Boulevard, now called The Arbor.
The area is home to two large retail developments: The Orchard and the Home Depot Center.
It also has a few smaller retail centers including the Prothero Retail Center and the Twin Peaks Plaza.
The city is encouraging individual retailers and property managers to send their discounts, promotions and events, which the city posts online at its Shop and Dine Lake Forest site, which is part of the city? official Web site.
?t? really offering the tenants some exposure,?said Julie Baia, general manager of The Orchard, Lake Forest? largest shopping center.
The Orchard, like many strip malls across the county, has recently lost some stores, including an anchor tenant.
Still, it boasts a relatively high occupancy rate with a few spaces to fill.
The Orchard has replaced some of the smaller stores that left and still is looking for a tenant to replace Shoe Pavilion, which closed at the center.
Killer Dana Surf Shop closed but was replaced with a dental business. Thai Spice restaurant closed and was replaced with a bakery.
