For Santa Rosa, 2016 brought big shifts in the car-buying landscape
Jennifer Alcocer already leases one electric car, but last week she was looking at a second, a new model that? on a single charge can travel more than twice the distance of her current ride.
“I’ve totally had the range anxiety,” said Alcocer, referring to the fear that electric vehicle drivers have about running out of power before reaching the next charging station.
Enter the 2017 Chevrolet Bolt, an electric-powered hatchback with an EPA-estimated range of 238 miles and a base price of $37,495. The Bolt, this month named car of the year at the North American International Auto Show in Detroit, is eligible for $10,000 in state and federal tax credits for buyers.
“It’s Tesla range for half the price,” said David Barnes, general manager at Platinum Chevrolet in Santa Rosa, where Alcocer and husband Kevin Tedrick stopped by Tuesday afternoon.
Sonoma County auto dealers enjoyed strong sales again last year, and high-tech offerings like electric vehicles and advanced safety features continue to attract buyers into showrooms.
Even so, it’s unclear how much more sales can grow at a time when the wider new car market appears to be slowing. And Sonoma County’s used car business just got more competitive with the recent addition in Santa Rosa of CarMax, the nation’s largest used car dealer with a website that allows local buyers to easily find and acquire vehicles from other company stores in the region.
“Anyway you cut it, business is extremely good in Sonoma County,” said Jim Bone, the dealer and a partner in the Jim Bone Auto Group in Santa Rosa.
Car sales, he said, have benefited from strong employment and rising wages.
For the first 10 months of 2016, Sonoma County dealers sold 18,546 new cars and light trucks, according to global information services company Experian. That was just 240 more than from the same period in 2015, but still on track to be the best year in more than a decade.
In contrast, during the depths of the last recession, county car dealers sold just 9,700 new vehicles in all of 2009. In 2010, the total rose to fewer than 10,600 vehicles.
However, after an unprecedented six straight years of increasing sales, the state’s new car market “seems to be running out of steam,” the California New Car Dealers Association stated in a November outlook.
Sales growth for new cars was flat in the third quarter. But the state’s buyers still purchased roughly 2 million new cars in 2016 for the second straight year, the best results in a decade.
“We’re slowing down near the top,” said Brian Maas, president of the California New Car Dealers Association. “That’s the good news.”
The association forecasts dealers will enjoy relatively strong new car sales for at least the next two years. The market is benefiting from rising household incomes, relatively low interest rates and new tech innovations.
The innovations include recent advanced safety features, including a car’s ability to automatically brake to avoid a pedestrian in a crosswalk or another vehicle making a quick stop.
Also available this year are more affordable electric cars that can travel from, say, Santa Rosa to Redding on a single charge.
That kind of range drew Alcocer and Tedrick to check out the Chevrolet Bolt. The couple already have an electric Mercedes B Class hatchback, with an estimated range of 87 miles.
Tedrick said he had been thinking of making his next car the upcoming Tesla Model 3, a sedan with a base price of $35,000 that is scheduled for release later this year. But he acknowledged being impressed with the Bolt, and he thought plenty of other drivers would find it a value when compared to gasoline-powered vehicles that require oil changes and other engine-related maintenance.
“It makes a lot of sense,” he said.
Electric cars now make up less than 2 percent of new cars sales in California, according to the dealers association. In comparison, regular hybrids make up almost 5 percent, but their share has slipped over the past two years, while plug-in hybrids account for less than 2 percent.
Late last year, two local dealers benefited from an electric car incentive program offered by electricity provider Sonoma Clean Power. The public agency gave $2,500 discounts to consumers who purchased or leased a Nissan Leaf or a BMW i3, the electric models of the two manufacturers that opted into the incentive program.
Buyers acquired 180 Leafs from Bone’s Nissan dealership between late October and early January, the dealer said. Normally he would have sold about 25 Leafs for that period.
“It put a lot of electric cars on the road,” Bone said of the program.
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