Registrations rise 40% for new autos in 2014

New vehicle registrations in Arkansas returned to pre-recession levels last year, rising 40 percent compared with 2013, according to data from Cross-Sell of Lexington, Ky.

There were 143,331 new vehicles registered in the state last year, up from 102,262 in 2013, the provider of automobile analysis reports said.

Last year's total was the highest number of new-vehicle registrations in Arkansas since Cross-Sell began providing statistics in 2009.

"At long last, the automotive market has recovered to pre-recession levels, for both Arkansas and the United States," said Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock.

Nationally, about 16.5 million vehicles were sold last year, capping a 58 percent increase in sales since 2009, when the recession ended and General Motors and Chrysler restructured in bankruptcy, Bloomberg News reported.

In December, 10,874 vehicles were registered in Arkansas, up slightly from 10,246 in December 2013.

There were 1,577 Chevrolets and 1,535 Fords registered last month. There were about 21,700 Chevrolets and about 20,700 Fords registered last year.

Arkansas' December registrations more closely correspond with sales in November because Arkansas law gives auto buyers up to 30 days to register vehicles after making the purchase.

There were 42,419 used vehicles registered in December after sales at auto dealerships, Cross-Sell said. That was down slightly from 44,061 in December 2013.

Annual vehicle registrations have more than doubled in Arkansas since a 2009 low of almost 64,100. Registrations have increased annually since 2009.

A combination of several factors are spurring growth, said Dennis Jungmeyer, president of the Arkansas Automobile Dealers Association.

"It's the economy and attitude and gas prices," said Jungmeyer, who was attending the national automobile dealers convention Monday. "People are jumping into [sport utility vehicles] and trucks. The atmosphere [at the convention] is fantastic. There are 15,000 car dealers out here, and I think every one of them is looking forward to a [great] year."

Another incentive for the increase in vehicle sales is pent-up demand for new cars, Jungmeyer said. The average age of vehicles on the road is more than 10 years, he said.

It is possible that the demand for new cars could last as long as another 24 to 36 months, Jungmeyer said. Some are predicting that 17 million new vehicles will be sold this year, he said.

"I bet we tack on another 10 percent [in sales]," Jungmeyer said. "That would be awesome. Years back [before the recession began], we did 120,000 to 125,000. Obviously after that dip during the recession, we are back strong."

The Frank Fletcher Auto Group, which has five dealerships in Arkansas and seven in Missouri, gained 14 percent in sales last year and is projecting gains of 6 percent to 8 percent this year, said Tom Roy, chief financial officer for the firm.

"After 2013 and 2014 being such good years, we are being cautiously optimistic about 2015," Roy said.

Like dealerships throughout the country, Fletcher saw an increase in pickup and sports utility sales in 2014, Roy said. Falling gasoline prices and higher gas mileage for new trucks and SUVs have helped add to those sales, Roy said.

Business on 01/27/2015

Upcoming Events