Auto sales increase in county outpaces national average

Gazette, The (Colorado Springs), Jan 14, 2005 by JIM BAINBRIDGE THE GAZETTE

With a 1 percentage-point sales tax increase looming, El Paso County auto dealers enjoyed an even greater increase in sales of new cars in December than their national brethren, especially with their highend vehicles.

Red Noland Cadillac sold 39 vehicles in December, up 10 from the same month a year earlier, and Lexus of Colorado Springs had a record month, with 76 new vehicles and 55 used cars sold, for a total of 131.

"It was an excellent, excellent month," said Joel De-Fazio, general sales manager at Red Noland Cadillac. "Part of it had to do with accelerated depreciation scaling down this year, and part of it was the pending increase in sales tax. On a $60,000 car, that meant you paid $600 less in tax by buying in December."

Lexus operations manager Jim Hilger said most of his customers knew about the tax and "we did a pretty good job of reminding them... of giving (customers) a sense of urgency. It was definitely a factor."

Even those Colorado Springs-area dealers who concentrated less on luxury vehicles did better than the 4.3 percent increase in auto sales nationwide.

Heuberger Motors Inc. had a 6 percent increase over the previous year while selling 155 vehicles in December, an increase that allowed Heuberger to jump four spots, to 14th, among Subaru's 581 dealerships nationwide.

Combined sales for Team Chevrolet and Team Volkswagen reached 204 for December, according to executive sales manager Hap Norris. It was the dealership's second-biggest month of the year and 30 vehicles ahead of last December.

CONTACT THE WRITER: 636-O126 or bainbird@gazette.com