Coming off record year, Southeast Toyota Distributors optimistic about the future
It’s no secret
that the auto industry has been on a roll – so to speak – of late.
Just last year, total automobile sales in the United States topped 16.5 million, edging toward the 17.4 million-mark set before 2008’s financial meltdown.
While the record for national sales is still somewhere off in the distance, there was the sound of records being broken here at home not too long ago.
When the counting was done, 2014 turned out to be a year in which Deerfield Beach-based Southeast Toyota Distributors moved more cars than it had in any other year since it was founded by the legendary Jim Moran in 1968.
“2014 was the best year in our almost 50-year history,” says Mike Stark, SET’s vice president of planning and administration.
Last year the company, which wholesales cars to 176 dealerships in five Southeastern states, saw retail and fleet sales top more than 445,000 total vehicles, surpassing the previous record of 441,505 in 2007.
And that’s just the beginning of the
good news for this local company.
First-quarter retail sales this year seem to be following a similar trend set last year, and are up by about 10 percent.
During the first quarter of 2015, Southeast Toyota dealerships’ retail sales reached 78,622, up by about 10 percent over last year when a little over 71,000 were sold.
What is driving the increase?
Well there are several factors at play, including the national trend of auto sales climbing upwards.
Here in South Florida, the overall economy may be playing a significant role, perhaps one even greater than elsewhere.
So far this year, South Florida Toyota dealers, which represent about 10 percent of Southeast Toyota dealers, have sold about 20 percent of total volume, with Toyota of Hollywood leading the way.
“We’re very fortunate to have a great bunch of dealers,” Stark said. “The first-quarter increase shows the phenomenal job they have done both in sales and in taking care of customers.”
Part of the growth in South Florida Toyota sales is also due to the popularity of the latest generation Corolla, unveiled last year.
“Historically, the Corolla has done very well in South Florida,” Stark said.
Across the five-state Southeast Toyota’s region, Corolla sales are up a whopping 40 per- cent over the first three months of 2014. Popularity of the new model plays a part but another big factor, according to Stark, is availability.
In 2014 Corollas were hard to come by, and retail sales grew just 14 percent. But now, with the compact being made in two North American locations, the supply has increased dramatically thus making it easier for dealers to meet the demand.
Another factor playing a role in the increased sales of Toyotas throughout the Southeastern United States so far this year is the growing economy.
“The economy is improving within the five-state area,” Stark said. “There’s a good feeling out there right now, especially among Toyota dealers.”
Lower gas prices are also fueling sales, especially of Toyota’s light trucks.
Sales of the popular Toyota Tacoma are up by about 32 percent for the first three months of the year, and sales of the larger Tundra are up by about 15 percent.
“You’re seeing a lot of construction these days, and when construction is doing well, we’re doing well,” Stark said.
With 2015 off to a great start, the Southeast Toyota team and the area’s Toyota dealers hope to set yet another record.
“We’re optimistic,” Stark said.