Drivers have chance to comparison shop
With 700 models at the Houston Auto Show, there will be plenty of tires to kick
Local auto dealers hope to ride their post-Hurricane Harvey sales bump into the Houston Auto Show, where drivers still looking to replace their waterlogged vehicles can test-drive new cars, trucks and SUVs.
Hundreds of vehicles, such as Mustangs, Rams and Jaguars, rolled into the massive ark-like NRG Center on Monday as organizers began setting up for the 35th annual show, which runs Wednesday through Sunday.
More than 100,000 people are expected to attend the five-day expo, which showcases
more than 700 models from nearly 40 manufacturers spanning family-friendly Subaru to sporty Porsche. The Houston Auto Show, organized by the Houston Automobile Dealers Association, is the largest in Texas, both in attendance and manufacturer
representation, according to organizers.
This year’s show will feature several new models, including the all-electric Nissan Leaf; a redesigned Jeep Wrangler; 2019 Chevrolet Silverado; Subaru’s first large SUV, the Ascent; Lexus’ first three-row SUV, the RX 350L; and a hybrid Porsche Panamera.
Attendees can test drive more than 80 vehicles, including luxury models from BMW, Lexus and Land Rover. Jaguar will have a racetrack with smart cones, and Jeep will have an indoor obstacle course for off-roaders.
More than 50 classic models, from as far back as 1938, also will be on display.
“This is the best way for people to comparison shop,” said RoShelle Salinas, vice president of the Houston Auto Dealers Association. “You can sit in, touch and feel the vehicles and experience it without the pressure of a salesperson trying to close a sale.”
The show comes as auto dealers’ post-Harvey sales bump has started to wane.
Drivers snapped up some 30,000 new vehicles in 2017 to replace some of the estimated 300,000 autos damaged or destroyed by Harvey’s floodwaters, according to TexAuto Facts Report, published by Sugar Landbased InfoNation.
Most flood-ravaged buyers purchased used cars, trucks and SUVs, as many juggled home repairs with finding a replacement vehicle. Many waterlogged vehicles were sold out of state or salvaged, said Steve McDowell, owner of InfoNation.
“I thought there might be a chance the Harvey bump was going to carry over into 2018, but it’s pretty much over,” McDowell said. “It was a short-term boost.”
Although the Houston Auto Show does not allow vehicle sales on site, many dealers are hopeful the expo will rev up sales. McDowell expects 306,000 new vehicles will be sold in the Houston area in 2018, a 5 percent increase from 2017.
Houston Auto Show chairman Tony Gullo, who owns 12 new-car dealerships in the Conroe area, said he anticipates a 4 to 5 percent sales bump after the show.
“Over the years, we’ve seen an influx in our business the tail end of January into February,” Gullo said. “We’re expecting to see a spike in sales over the next several months.”
Recent InfoNation data are less conclusive. In 2017, new-vehicle sales fell in February after the show; in 2016, they were stagnant; and in 2015, they climbed every month from January to March.
“The auto show does create some excitement for buyers and drives traffic into showrooms,” McDowell said. “But there are so many factors that influence sales, including the weather, the economy and the news, that month to month, it’s hard to tell.”
Headwinds facing auto dealers this year include rising interest rates on car loans and an influx of late-model vehicles coming off leases entering the used-car market.
Moreover, as modern vehicles have become more reliable, drivers are holding onto them longer. The average age of vehicles on the road in the Houston area is nine years, InfoNation reports.
However, rising oil prices and the recently passed tax plan in Congress could buoy new car sales, McDowell said. Some 76,500 new vehicles were sold in the fourth quarter, the best fourth quarter since 2001. The average sales price per vehicle in December was $38,320, up nearly 5 percent over the prior month, according to InfoNation.
“We really had a good year in 2017,” McDowell said. “I think we’ll have a better year in 2018.”