Herb Chambers discusses the latest auto sales reports

Our next guest does not need an introduction I don't think there's anybody out there that knows more about the automobile business and her chambers her welcome to the show are you doing. Good morning aren't great. Thanks for coming on I know you're busy man has a busy time in the month -- you with death. How the April auto sales numbers came in yesterday afternoon. Who was your perspective on -- did they meet your expectations. Well actually we thought they would be higher but. You know it's difficult when you look at the national numbers because. There -- so much of their production goes into fleet. Of which we have nothing to do well. You can take -- for example about a third of their production ghost of plea. What is fleet do you talk a little rentals -- -- car rental company. Yet. And you know this what they just didn't didn't ticket march -- So I know that locally. Massachusetts sales were. Up about two 3%. Our sales under vehicle was up about eight point seven. And what are your specialty he -- you do in the foreigner the domestically we don't. We do all yup you know -- we're. Probably equally balanced we have a little bit less in domestic -- very peppy and Korean and Japanese cars and of course we sold all of electric brakes right but. The I think that we -- of will be discounted much heavier and the month of April and we had done earlier in the year and I think that's the reason that we get an increase -- we do it. What -- what's the average age of the American vehicle on the road today her. The average is. Ten point eight years which is really. You know at what is normally -- it's -- now. Is it normal the so it. If you get back to 1995. The average was eight point four. So that 25% older than they were in 1995 you can only put it costs along. Yes sort of related but you know the truth of the matter is that the vehicles today so much better from a quality standpoint -- -- a lot lot longer much like army used to be that when a car got 200000 miles it was time to put in the junkyard. And today we see vehicles all the time that are 200000 miles. Yeah but the thing is her -- you get at least my experience has -- when you get to that 92101000. Mile range. Usually you get a big bill associated with at least it that. I I've got an idea an -- Honda CRV that the kids drive around Europe and the darn thing you know I I drove it in it's a great car and all of it. But when he hit a 100000 it needed I think about 3500 dollars worth the repair so give you kind of look at it and say well is the car worth 3500 bucks. Well you know I think if -- were brought a -- steady Honda that skirt over 200000 miles. Yes it would when you think about. You know spending 3500 culpable -- -- and those are really worth the truth of the matter is if you can go to the 151000 miles whether it's certainly makes cents. In it in your dealerships -- How much is the price of gas influencing buying decisions always like I'm trying to figure out like you sell on a lot more of the fuel efficient vehicles. Absolutely I mean. What what fueled it four dollars a gallon after example we -- Smart -- India yeah what do you do when they run about fifteen they run around 151000 you know but there's some very attractive leasing programs on the now. I saw one I don't know who's -- at a not I was on the southeast expressway it had the cost of the cell phone and 99 dollars a month in the cost of a Smart Car right if that's woods called it the Smart Car was 99 dollars a month that -- practice it's. At a of those you guys are not that would you it was a clever ad. Well I thought it was short circuit or take credit for creating -- but I -- -- But it -- -- nine dollars a month. I mean just told goals took the degree of more than that I think that. It's I mean I don't so much of a thousand dollars down. -- -- but you're seeing it like overall Herbie what about of the luxury brands like UCE you've got that big dealership down. On on route one now what you are out there -- are you selling like there are people going into that dealership and buying hybrids and. Everybody is focused on fuel mileage and then yeah if you look at port for example we have this new engine a cult cult echo boost. And he you know that is driving miss sales thru the roof. They -- -- their pickup trucks. Did new fusion has that accords -- Lexus they get the hybrids and I mean you can get Alexis CP. Hybrid that gets 42 miles per gallon. So people are very very conscious about you in you know what when it hit four dollars. For fuel to go what's next part dollars and crushed so much money again -- So you know I can see where people concerned about even with Mercedes people command. And they want an all you know how much is historic it would it would as a fuel mileage in this particular car and. Is there a stigma associated with driving hybrids I drive a hybrid and I get teased about it on mercifully by my kids by my cohost. In the end the day they called me a nerd geek. Every every day at a book. They just teasing you because. Everybody would like to be getting that kind of mileage. Did what you do you guys have the -- a plug in hybrid -- We don't have done the belief. Is which is -- -- product yup they haven't courses which Chevy Volt. But I don't know how well those vehicles are selling I know that -- ripped up immunity and chair belated stop production. On the -- For a period of time because they just -- moving them you get a saw something on line yesterday it would liberated the view of the candidate had won then and he left. So. I think it's a while away because people are concerned double where can I plug it -- The -- you you said you're auto sales were up 8%. In April. We're -- luxury sales up more than you're your your your key your Ford's sales. I would take you across the board it was an average I don't have the specifics on it yeah the interesting thing is that used car sales were up sixteen point 2%. Yeah and the price of used cars is is getting higher because. Iran -- many. Available so we have to give a lot more on trade -- were people -- Yeah what bank Steve used -- for for financing because I know that was part of the reason that sales were down so -- trait was the the the at the bank -- fine work fine it's. We try to use the captives which could be Ford or we try to use get a General Motors if if finance arm. Chrysler corporation General Motors I mean not Mercedes-Benz. So it's it's you can go to captives they they are the most aggressor operates. They were getting some text questions for you herb I hope you don't mind -- there aren't a lot script yeah from the 50 weight Dexter says to ask herb wind it's when he thirteen Honda Accord is coming out. I think will see that in about another sixty deny any day. Now I think that because this past month. Honda had a huge incentive with dealers to move the under recorded inventory which tells me that there -- -- around -- -- Okay yes it -- -- they're they're dumping the old ones so they can bring in the new right. So he think the pace of auto sales is gonna continue through -- -- the end of twelve or beyond. Oh I think it will because again you're dealing with a lot of vehicles that are or are getting tired -- -- you know they've been around for long time. And I think thing is that with the economy coming back I think economy definitely is coming back in in -- part of the world. People want new vehicles. You know you don't getting to break gas mileage as a super excused from buying one. -- I know it is an Indian and they want new vehicles and when you have four dollar gallon gas and I've read reports where we could be paying five dollars a gallon by Labor Day -- you know that that influences your buying decision I gotta tie it or if it is influencing your whole life stuff. Well I think what it does to a justified when you go home and say I'm buying a new card into wine buying the car if it because as you know what's gonna get 42 miles per gallon of six elections. -- Federer -- he's -- OK that makes sense to. -- you -- must've been married for a long time to all right our thanks experts. I've been there done that extra -- That's Herb Chambers during -- giving us the lowdown on April auto sales and it is. He is it it's good to see them straw. I'm not surprised about the used car you know I bought a used vehicle a year ago with about 75000 miles on an -- the year. I took it in do you love. I took it in -- -- -- up it doesn't need a thing now. I hope I'm not fixing myself but this thing runs it runs really well and they're making them so much better than they did twenty or thirty years ago. So they last.