With car sales dropping 24 percent in May alone, dealerships said it was hard not to notice a lack of customers.

But some are optimistic that current housing developments will create new opportunities.

The Retail Sales Index revealed sales were down 24.3 percent in May — the second double-digit decline for the auto sector since January 2008. Sales between January and May have not been this bad in three years.

Randy Wells, sales manager at Eurocar Ltd., said the staff have definitely noticed less people enquiring about new vehicles.

"I think we are being impacted by the world-wide economic conditions," he said. "Things are costing more so people have less money and those that do want to hold on to it. People that are coming in are definitely shopping around a bit more. Plus I think people are holding on to their cars longer too.

"We've definitely noticed it and are getting creative. Right now we have a special on five vehicles, either the Clio of the Modus, there are five cars each $5,000 less than the original price. We started it last week and once those five cars are gone the special is done. We have definitely had interest in those cars."

Bermuda Motors, which sells Toyota, Kia, BMW and Ford vehicles, has noticed sales have fallen 18 percent between January and June.

"I am not really sure what is causing it," general manager Michael Butler said. "I don't know if it is because of a recession or if people are just not buying cars right now."

But Mr. Butler said he is not overly concerned by the statistics because he believes that new developments could improve sales.

"There are quite a few condominium developments nearing completion and that could mean more cars because they will have assessment numbers," he said.

"But the Premier has also said he will be tightening up legislation so that you have to live in the house where you have an assessment number. At the moment you don't have to, so that could impact us.

"We will just have to wait and see."