Auto dealers enjoy accelerating car sales
While car sales increased by 48.7 per cent between July and September, according to the latest Retail Sales Index figures, the reason why might be a matter of opinion.
Two major car dealers have different points of view.
Bermuda Motors said it is part of the typical auto replacement cycle.
Auto Solutions on St John’s Road, Pembroke, attributes the jump to larger electric cars they helped to put on the roads.
This includes the hybrid Hyundai Kona which fits into the I class, introduced two years ago after the passing of the Motor Car (Electric or Hybrid Private Motor Cars) Amendment Act. It allowed for electric vehicles up to 176-inches long and 72-inches wide.
It has been suggested that as much as half of the cars on the road in Bermuda were sold by Auto Solutions.
Harry Andrews, Auto Solutions sales and operations manager said after trending towards larger electric vehicles the market is now screaming for smaller, cheaper ones.
Bermuda Motors managing director William Madeiros, however, has a different take on the situation.
He said: “Vehicles are an essential part of daily life in Bermuda, and many livelihoods depend on reliable transportation.”
He said Bermuda is now more than a decade past the America’s Cup when there was a significant uplift in vehicle purchases.
“Many of those vehicles are now reaching replacement age, and customers are upgrading to more modern, fuel-efficient and technologically advanced models,” Mr Madeiros said. “We are fortunate to represent some of the most established original equipment manufacturers in the industry.”
The Kia Picanto remains their bestselling model.
After the Covid-19 pandemic one of the biggest challenges for car dealers and mechanics was accessing replacement parts.
Auto Solutions’ managing director, Glen Smith said while the situation has shifted, accessing parts can still be a nightmare six years on.
“A car can be a Japanese brand, but be made anywhere such as India, Thailand or Hungary,” Mr Smith said. “The problem is, if it was made in India, then you need to get the parts from there.”
Mr Andrews said rather than flying parts piecemeal and increasing the cost, they now order parts more regularly and ship them in containers.
“Our parts department has become better at consolidating parts,” Mr Andrews said. “That reduces our landed costs.”
Auto Solutions was optimistic that Bermuda will continue to see a rise in motor vehicle sales in Bermuda.
