Car Sales on Rise at Auto Row

Sales at Petaluma’s Auto Row have rebounded, as consumers seek out energy-efficient vehicles and look to replace old cars.

At , sales are up by 14 percent from last year, according to Ron Coury, director of e-commerce for the dealership.

“People have been sitting back and waiting for things to improve only to realize that the economy isn’t going to get better overnight, but they still need new cars,” Coury said. “And many are realizing they need something more fuel efficient.”

In auto sales speak, this is called “pent up demand,” meaning that consumers who held back from buying a new car because of economic uncertainty are now doing so. In fact, the average car on the road today has 140,000 miles on it and is almost 11 years old, the longest consumers have ever held on to their vehicles, according to Justin Hansel, vice president of the Hansel Auto Group, where sales are up by 20 percent from last year.

The other reason shoppers are coming in is historically low interest rates.

“Interest rates are a big deal and are making it easier to make a purchase,” Hansel said. “Also, the average debt load is the lowest it has been in two decades. People have paid off their debt and they are feeling confident”

Finally, because of rising gas prices, consumers are seeking out more fuel-efficient vehicles. At , the number one selling vehicle is the Honda Accord, followed by the Toyota Prius and Ford Focus, all of them fuel-efficient cars.

At , sales manager Oreste Gonella says things are picking up with more shoppers seeking out—you guessed it—energy efficient cars like the Chevy Volt. In fact, the biggest problem for the dealership is getting the right cars in stock, Gonella said.

Looking forward, all dealerships say the expect sales to keep rising in subsequent years.

"All the signs are there that business will continue to pick up," said North Bay Nissan's Coury.