The Carriage Trade in Southwest Florida

It's mind-boggling. One wonders how a market of about 500,000 people in Collier and Lee Counties can absorb so much inventory. Hectares of cars -- new and used -- occupy the most-traveled retail frontage in the region. Auto ads shout expensive advertisement slogans during the evening news and early primetime. And today's typical deals don't even require money: Just sign and drive, they promise -- and we do, even when the rest of the country resists.

It's a good time to be a car dealer in Southwest Florida.

Against the Traffic

According to American Automobile Manufacturers Association reports, Southwest Florida's car dealers should be idling down. AAMA forecasts that nationally auto sales will be off 8.3 percent this year. Add that to a 3 percent decline last year and a slip of 1.3 percent in 1996, and it would be hard to convince even the most bullish assessor to invest more now.

But far from idling down, this region's dealers are revved up. Sam Rusinik, general manager of Germain Honda and BMW, reports Honda sales up 50 percent in the last two years and BMW sales up about 28 percent. "The market's very good," he says.

Every dealer interviewed for this story, businesses representing more than 15 franchises, agreed, but no one as succinctly as Galloway Ford's Sales Manager Lou Simonetti. "My sales are great," he says.

Southwest Florida appears to be immune from the current national trend. According to Rusinik, the economic health of Southwest Florida is mostly responsible. "The economy is more consistent here," he explains. "Our market base is growing, becoming more year-round, and there are more two- and three-car families."

Ed Williams, General Sales Manager of Regency Autohaus, the Mercedes dealer in Naples, adds, "You can sell a lot of cars in a good economy."

DeVoe Automotive Group handles seven franchises including GM lines, Volvo and Infinity. Robin Craig, who directs DeVoe's marketing efforts, agrees, "The car business right now is very healthy."

But she attributes her company's success to keeping loyal customers and drawing new ones. "A lot of our business is repeat business," she says. "Our customers are very brand-loyal and very model-loyal: Sedan de Ville or Eldorado, it's the same size car they already drive."

She sees line expansion as a way farther into their garages. "The [low- to mid-$30s] Catera has opened up a whole new market, and some Cadillac families have one as a second car."

Lee Butler, general sales manager at Scanlon Lexus in Fort Myers, says that customer service has made the difference as old customers travel through the car-buying cycle. "We have a tradition of keeping the same people here," he says.

Sell 'Em If Ya Got 'Em

America, and Southwest Florida, have fallen for sports utility vehicles, or SUVs. The power and the size have seduced large car drivers, station wagon families and ersatz adventurers away from traditional choices, according to Galloway's Simonetti. "SUVs are the major item," he says "It's the strongest market I've ever seen and has been for the past five years.

"People are still looking for a roomier-sized vehicle but don't want to be driving a van. An SUV brings the upper prestige, and it's not looked down on as a truck." He laments his allocation of Ford Expeditions. "We can't keep enough in inventory."

First, SUVs were the niche dominion of Jeep, until the Ford Explorer brought mainstream buyers into the showroom. And, like Jenn-aires from hibachis, the up-market will soon be thoroughly exploited. "The market prompted Mercedes to get into that business last year, and it's been extremely popular," says Regency's Williams. At $34,600, his ML320 SUV is the least expensive Mercedes. Well-equipped, it's still under $40,000. "The SUV is very important to us," Williams says.

Until the '90s, Cadillac wasn't hip enough to respond to a market development like SUVs. But no longer. "SUVs have had a big impact," DeVoe's Craig concedes. Cadillac is introducing an SUV in '99 called the Escalade and will help Caddy develop a younger target demographic. "The interior is very, very luxurious, and it's priced in the mid-$40s," she says. "We have high expectations."

Cadillac's entry is challenged by an SUV from Lexus. "It's becoming the number one seller for us," says Butler. He adds that Scanlon sells about 35-40 SUVs a month between the RX 300 line, which retails for about $34,000 to $38,000, and the LX 470 line, which begins at about $58,000. The two-door sport models have become increasingly popular.

And according to Germain's Rusinik, even BMW wants in. According to Rusinik, there will be a Beemer SUV similar to the 5-Series in 2000. "It's still in the work-up stages, and there's no model name yet," he says, "but it's expected to be in the Lincoln Navigator price range." He promises more of a passenger vehicle than a truck.

Meet The Beetles

The Beetle's back (Yeah, yeah, yeah). However, the new Beetle, other than its morphed body, bears little resemblance to the original, with a water-cooled front engine and a heater that works.

The technical improvements are far overshadowed, though, by the public frenzy. "It's the most astonishing thing," exclaims Art Riddle, General Manager of Freeland Volkswagen, Mazda, Hyundai, Subaru. "I've been with the car market for 20 years, and I was lucky enough to be with Ford when the Explorer came out, and this is bigger."

Currently, a cash buyer can get a new Beetle from a factory dealer about five months after ordering, according to Riddle. It's possible to get one sooner, from a subsequent dealer, if you are willing to pay the going rate of $23,000 for a car that lists for $17,800. "They were bringing $3000 over the sticker price at the [wholesale] auction," Riddle says. "And looking at last week's auction reports ..," he pauses and pages are turned, "...it's dropped a little, but not much."

Ironically, the quintessential German car is made in Mexico and is not available in der Fatherland. In that, Riddle tells us, is opportunity. "There is a demand on them for exporters to buy them and take them out of the country, he says. "We are forbidden to sell to exporters. We must have a local address and title it in that name."

How much are Beetles bringing in Germany? Riddle looks both ways before answering. "I heard between $40,000 and $50,000," he whispers.

Ach du lieber! Maybe we can make it in time for Octoberfest.

It's The Lease You Can Do

As much as the product, it is the deal itself that is bringing buyers into showrooms more often than ever before. Ten years ago, traditional wisdom preached that if you could deduct the cost of a car as a business expense, it was appropriate to lease. And with no deduction, you were better off buying. Not anymore.

According to Rusinik, leasing is making it more affordable to get into upscale

autos. "A few years ago, 30 to 40 p