The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Auto dealers yesterday expressed optimism that they would double their monthly sales average in April as a result of the recent Car Show, with some having already hit their 10 per cent ‘conversion’ return rate.

Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business that his Quality Auto business was aiming to 
“process 80 units for the month minimum”, almost double the company’s normal 40-45 average.

Disclosing that the Car Show, held on the last weekend in March, had met “90 per cent” of his expectations, Fred Albury said that while the commercial banks had reported fewer financing applications compared to 2013, one reporting a 37 per cent year-over-year decrease, it was “quality” that counts.

He was backed by Ben Albury, Bahamas Bus and Truck’s sales manager, who told Tribune Business that his dealership had already hit the 10 per cent “rule of thumb” return target for converting Car Show prospects into sales.

“The banks are reporting that there were less applications done compared to last year,” Fred Albury said. “One bank stated that last year Friday, they did 350 applications versus 220 this year.

“But, at the end of the day, it’s the quality of the application that comes through. I’ve seen years where there have been 500 applications, but the reality is 5 per cent of them go, and when you have less there are higher closing rates.”

The BMDA president added that invoice quotations written up by dealers at the Car Show were “already translating into sales.

“The rule of thumb is a 10-15 per cent closure rate based on the pro forma invoices given,” said Fred Albury. He added that Quality Auto registered 10 of those Car Show invoices on Monday, and another six yesterday.

“By the end of the month we’ll know where we’re at,” Fred Albury told Tribune Business. “We’re hoping on the Quality Auto side to process 80 units at a minimum, hopefully more.

“On average we’re doing 40-45 units a month. Hopefully this will take us up to about 80 units. Quality and Sanpin are the ones that benefit the most.”

That is because their respective Hyundai and Kia brands are benefiting from the favourable won/US dollar exchange rate, while their smaller size and lower prices attract less Excise Tax and thus find favour with price-conscious Bahamian consumers.

Still, Mr Albury said that his BMW brand also performed well at the Car Show, with the Series 3 and X1 models “practically sold out”.

“In comparison to the times we live in, any shot in the arm is good to keep the doors open,” the BMDA chief told Tribune Business.

“Some of the brands are touch and go at the moment, they’re questionable, and are hoping to get a boost.”

He added that the banks and commercial lenders were “very competitive” on financing and interest rates for those Bahamians who qualified.

Meanwhile, Bahamas Bus and Truck’s Ben Albury confirmed that the Car Show “was a success as far as applications taken. It’s now just a matter of seeing how it translates into sales overall”.

Acknowledging that, with vehicles priced in the $20,000-$30,000 range compared to his typical $50,000-$60,000 autos, the Kia and Hyundai brands were controlling 50 per cent of the Bahamian new car market, Ben Albury confirmed that the Car Show aftermath had also converted into extra sales for his business.

While the industry will not be in position to assess the full impact until the end of April, he told Tribune Business: “As for as total invoices, quotations we wrote, we met or exceeded expectations.

“It’s a matter of seeing how that translates. We wrote up approximately 75 quotes, and expect it to be a 10 per cent return. We think it’s going to exceed 10 per cent, as we’re at that mark already.”

Ben Albury said many buyers who had been approved for financing now had to close the arrangement with their lenders, adding that the banks were still imposing a tough qualifying criteria.

“I’ve had a lot of established customers having to jump through hops to get financing, but it’s a sign of the times,” he added.

“But you can tell from the Show and attractive interest rates they offered, the best in 19 years, that the banks want to lend. It’s now a matter of people bringing in the documentation and having the patience.

“Sometimes that can lead to the point of frustration where people say forget it, I’m not going through this.”

Positive in his outlook, Ben Albury told Tribune Business: “A little bit remains to be seen, but the feedback I’m getting, the customer follow ups and the calls I’m getting, the [sales] numbers may grow in the next week.

“I’m an optimist. I have nowhere to go. This is my career, and I intend to be doing it for a long time and doing it successfully.”