Car sales plummet by 40 per cent

FRIDAY, SEPTEMBER 23: Retail sales dropped by nearly $5 million in July, compared with the same month last year.

Car dealerships across the island were hit hardest witnessing a staggering 44.7 per cent drop in sales.

The Retail Sales Index for July indicated that the number of cars sold fell by 41 per cent, while motorcycle sales declined by 17.6 per cent.

Leaving island

Jeff Stirling from Continental Motors told the Bermuda Sun that 2011 has been the worst year for the industry for more than a decade.

“For us it is very, very slow,” he said.

“A lot of people have been leaving the island and selling their cars at half the price, and you cannot compete with that.

“We’ve definitely seen a downturn in the number of sales but there has been an increase in the service department as people try to keep their old cars going rather than buy new ones.

“When the economy turns around I’m sure things will change but for the moment this is the worst it has been for a long time.”

There was however some good news in other business sectors which experienced small levels of growth. New construction projects helped boost the sales of building materials by 0.4 per cent, compared with July 2010.

It is the first increase in the construction industry since July 2009.

The Cup Match holiday gave service stations welcome relief from the global downturn.

Sales receipts at gas stations across the island increased by nearly nine per cent compared with July 2010.

Clothing stores also reported a 5.8 per cent increase in sales revenue in July, which is the second consecutive monthly rise.