Hawai’i new car and light-truck sales tanked in the first quarter, but dealers believe the 17.4 percent drop represents the worst for a market that’s headed back onto the road of growth next year.

New vehicle registration data show there were 11,921 automobile sales in the first three months of this year, down from 14,431 in the same period last year.

The figures compiled by Auto Outlook Inc., a research firm that tracks sales activity for the Hawaii Automobile Dealers Association, put Hawai’i new car retailers on pace for a third consecutive year of fewer sales.

But the Auto Outlook report forecasts less-severe declines for the rest of the year followed by a 3.1 percent increase in sales next year.

“At this point, we believe that the market has reached its low point,” the report said. “Auto Outlook believes that sales will improve at least moderately in 2009, with a significant, lasting recovery taking hold by 2010.”

Though not a huge driver of the local economy, new car sales are another piece of commerce contributing to the state’s economic slowdown, and largely has been depressed by credit markets that tightened drastically last year.

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(Source: Honolulu Advertiser)