New car sales have had a generally positive year in Baton Rouge, according to local auto dealers, many of whom are hitting peak sales this week.
It’s a welcome change from the dry spell that followed the 2016 floods, which interrupted what the industry knows as the “three-year buying cycle” by causing one large wave of Louisianans to buy new cars after theirs’ flooded. But once the new buying cycle picked up over the summer, Baton Rouge dealers began seeing the market recover, and it has mostly returned to a post-flood normal in 2019.
“We’re up across the board,” says Matt McKay of All Star Automotive Group, estimating a 10% to 12% uptick in sales since last year. “The only thing interfering now is the bowl game.”
Other than the cycle, he attributes stronger sales to improved buyer confidence, buoyed by low unemployment rates and excitement about LSU’s record-breaking football season. While McKay’s sales spike is largely fueled by the purchases of new Hyundai and Kia cars, others say pickups and SUVs are still driving the local market.
Another concern that loomed throughout this year (and last) was President Donald Trump’s proposed 25% tariffs on foreign auto parts, though those fears have largely died down.
“It’s started to affect some of our customers more than us so far, so of course we’ll continue to be concerned about it,” says Trey Sellers of Ralph Sellers Chrysler Dodge Jeep, describing new car sales in 2019 as “flat” for the dealership.
Meanwhile, Eric Lane of Gerry Lane Enterprises, who saw a 5% increase in sales since 2018, predicts the upcoming 12 months will only prove better for the local market. He predicts an additional 5% to 10% uptick in sales throughout 2020.
“For the Baton Rouge market, 2020 will be a good year,” Lane says. “We’ll see more people trading in cars they bought after the flood out of necessity. I’m hearing that from a lot of people.”
