Page 66 - BusinessWest December 9, 2024

Thanksgiving week, normally a traditionally slower time, the Tom- myCar dealerships were “swamped.”
“I think they’re trying to build demand for the increased produc- tion,” Cosenzi said of the manufacturers, adding that these incen- tives were one of the key contributors to a very solid year.
Sullivan agreed that 2024 was a good year saleswise — better than most in the industry, and he puts himself in that category, were projecting roughly a year ago.
At Balise, sales were up roughly 10% (most years, 3% to 5%
is the average), a performance he attributes to lingering pent-up demand from the COVID years and availability of most models and most trims, including the lower-priced options on cars and SUVs that manufacturers pushed to the sidelines in favor of the higher- priced trims during COVID.
“This year was the first time that you started to get what people would consider to be real availability back,” he said.
Mike Marcotte, president of Marcotte Ford in Holyoke, said his dealership has also recorded a nearly 10% increase in overall reve- nue in 2024, which he attributed to those same factors, particularly availability — on both the consumer and commercial sides of the ledger — with December, traditionally a big month, especially on the commercial side, still to go.
“Ford has put some great incentives out there to end the year out,” he said, adding that these cover everything from pickups to EVs that come with free chargers. “It’s been a good year, and we’re expecting to end it in strong fashion.”
Cosenzi said final numbers are obviously not in yet, but she is projecting 8% growth for 2024, and something along those same lines for 2025.
While things are returning to normal on most fronts, on the electric vehicle and hybrid segment, there isn’t really a ‘normal,’ because this is an emerging market, one that is building some momentum, although there are now real question marks about the future of the EV consumer tax credit.
“You’re seeing a big increase in customer demand for hybrids and plug-in hybrids,” said Sullivan, adding that many see them as an alternative to — or a bridge to — EVs, which are enjoying gradual growth in sales amid more options and better incentives, for the moment, anyway. “People might be scared to get into an electric, but they’re saying, ‘what can I do?’
Mike Filomeno, left, and Mike Marcotte show off a Mustang Mach-E, one of the many EVs now sold by Ford.
Staff Photo
“This hybrid technology has been out there for some time, it’s performing very well quality- and reliability-wise, and people are a lot more comfortable getting into these vehicles,” he went on. “The percentage of sales of hybrids versus non-hybrids continues to grow.”
To a Higher Gear
To get his points across regarding availability, getting back to normal, and even the EV and hybrid markets, Sullivan referenced Balise’s Honda dealership on Riverdale Road in West Springfield.
“During COVID and the post-COVID era, it was not unusual
for us to finish the month with maybe 16 vehicles for sale,” he told BusinessWest. “Now that they’re starting to build more Hondas, I think we’ll finish this month [November] — and we had a very good month — with 80 to 100 to choose from if someone wanted to walk in and take one today.
“You went through three years of expecting to have to put a deposit down on something that was inbound on a ship, a train, or a truck,” he went on. “And now, you’re getting to the point where there’s a good chance you can find what you’re looking for available — not the same levels as before COVID, but at a level where the customer probably wouldn’t notice the difference.”
Elaborating, Sullivan said normal stocking levels would be 30 to 45 days of inventory, or maybe 140 cars in the case of this Honda dealership. At present, as noted, there are maybe 100, and they cover all trim levels.
It’s pretty much the same across the spectrum, he said, adding that inventory levels vary with the dealership, but most are working their way back to ‘normal.’
Improved availability is one of the key reasons why 2024 was
“You went through three years of expecting tohavetoputa deposit down on something that was inbound on
a ship, a train, or a truc. And now, you’re getting to the point where there’s a good chance you can find what you’re looking for available.”
a better year than most were expecting, said those we spoke with,
Drive
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