Auto sales could be down because consumers are holding off on buying new wheels until they find out if larger cars will be allowed on Bermuda's roads.

Auto dealers told The Royal Gazette this week that while stock levels had been good, sales had been off in recent months compared to last year.

And a number of dealers said proposed amendments to the Motor Car Act could be a "major factor" in lower sales levels with consumers saying they are waiting to see what happens to legislation before buying.

Retail sales figures show depressed auto sales in both July and August - down 1.6 percent and a whopping 21.9 percent respectively - but revamped car legislation should be looked at before the end of the year, according to Transport Minister Dr. Ewart Brown.

Dr. Brown yesterday said amendments - which propose increases in both the width and length specifications for vehicles - were still on track to be tabled and debated in the House of Assembly this year.

Anthony Steede, chairman of the Bermuda Automotive Distributors Association, said a workshop with Ministry officials had been "promised" some months ago, and that dealers - all of which are represented in the association - were "waiting patiently".

Mr. Steede, who is also the operations manager at Bermuda Motors, said the association had hoped the matter would be debated by the House before Christmas.

On that score, Dr. Brown said: "I expect that to happen before the end of this year.

"The delay has come because we initially did it (amendments) only for private cars and then realised that it would probably make more sense to extend it to all vehicles, so we looked at everything and now we are ready."

Although Mr. Steede said the association was still waiting to have a formal meeting with the Minister, Dr. Brown said: "Were the dealers consulted? Absolutely yes - that is how we approach all of our legislative initiatives. We do however make a distinction between seeking consultation and being bound to accept it."

That fact that proposed legislation could be moving ahead will be welcome news for dealers such as Jeff Stirling, general manager at Continental Motors who said sales had "slowed up" in August and were yet to pick up.

He said he was hopeful of sales turning around soon but added that customers have said they are waiting to see what happens with legislation. Some car dealers went so far as to say the proposed size increases could be a saving grace for their businesses because it would allow them to keep selling models that will be revamped within the next two years and will be too large to be imported under current rules.

Should the proposed legislation be passed by Parliament, dealers and drivers will have access to a whole new range of family vehicles, including Sports Utility Vehicles, such as the Toyota Rav 4, and station wagons, such as the Ford Focus Estate.

Regardless of changes to the Motor Car Act, Mr. Steede said it looked like car dealers would fare better with fourth quarter sales compared to the third quarter but business on the whole would be down off last year. At least one dealer however, EuroCar Ltd.

President Richard Davidge said his sales were actually up over last year: "I'd always like to do more, but we are holding our own in the market," he said but added that legislative changes were key especially for families looking for the larger vehicles.