During the first few months they poured about 40 percent of their promotional budget into the Poconos, eastern Berks County, northern Bucks County, Easton and Phillipsburg.īut when they polled residents in their own back yard they found that only 69 percent of the people in Lehigh and Northampton counties were familiar with the Auto Mile. It should especially bring in more customers from the eastern portion of the Valley and New Jersey.Ĭonversely, the reduced traffic flow on Route 309 from the construction of I-78 may have contributed to last year's decline in sales, according to Haldeman.ĭespite the better-than-average sales performance last year, the Auto Mile concept has still not fully blossomed.īelieving they had solidly established their identity locally, the Auto Mile dealers last year began advertising on the periphery of the Lehigh Valley. The coming of Interstate 78 on the Route 309 corridor, which bisects the Auto Mile, should also help their business, say the dealers. "People flock to the newest models available," said Scott. Competition is becoming keener because of the increasing variety of makes and models. The dealers are bullish about 1988 sales, which they think will stay at least even with last year's numbers. Parts and service sales are also climbing because there are many older cars on the road and the increasing complexity of cars requires more maintenance, said Scott, whose dealership has seen steady growth in service sales the last nine years. Lehigh Valley Honda set up operations in 1984 on the spot where Gehman's Chrysler-Plymo uth used to be. "People know we will sell a good sound auto," said Arthur Wright, president and co-owner of the Honda dealership. Lehigh Valley Honda, for instance, reported 1987 used-car sales up 32 percent. He and other dealers attribute the rise in used-car sales mainly to the public's growing habit of buying used cars from dealers rather than from second-hand lots. Used-car sales on the Auto Mile were up an estimated 1-2 percent for the year, according to Scott.
He said his 4th quarters are usually strong because that's when the new cars come out and luxury buyers like to have them right away. "We noticed a downturn in our luxury line," said Paul Haldeman, owner of Haldeman Lincoln-Mercury. The stock market's nose dive in October also made for a flat 4th quarter among some of the dealerships, especially those that sell the more expensive cars. The drop-off is blamed mainly on the elimination last year of the federal income tax deduction for sales taxes and lower interest deductions, according to dealers. Their new car sales on the whole dropped an estimated 5-7 percent from thebanner year of 1986, which wasn't as steep as the nation's 1987 new car sales decline of 10.2 percent, Scott notes. Dealers believe the Auto Mile concept has helped their businesses.