The loss of several area automobile dealerships -- including the recent closure announcement by Vinton Motor Co. -- is in keeping with a statewide and national trend.

Virginia is home to about 2 percent fewer franchised new-car dealerships than a year ago, according to the Virginia Automobile Dealers Association.

VADA estimates Virginia has 554 franchised new vehicle dealerships, a decrease of 11 from a year ago.

"We've been seeing dealerships closing around the state," association spokesman Michael Allen said.

This week, the owner of Vinton Motor Co. in Vinton said he will close Aug. 15.

Friendly Lincoln-Mercury in Salem closed last month after the owner sold his franchise to Magic City Ford. In a loss for far Southwest Virginia, Daugherty Brothers Chevrolet in Gate City shut its doors late last year.

Across the country, the number of dealerships shrank from 21,200 in 2006 to 20,770 in 2007, according to the National Automobile Dealers Association -- also a 2 percent drop.

It's unclear where the industry is heading.

Slow vehicle sales are driving the sector's consolidation. Allen said vehicle sales have been declining for about four years and profits are harder to earn.

As of the end of last year, the average dealer was losing money in his or her new-vehicle department, which includes financing and insurance products, according to the NADA. Used vehicles and service are profitable lines of business for dealers.

The used-car market at new-car dealerships worsened in early 2008, as sport utility vehicles received in trades lost value while on the lot as gasoline prices skyrocketed, Allen said. Now, dealers have adjusted their trade policies to stem those losses.

Meanwhile, fuel prices are inching downward. Regular unleaded fuel was priced at an average of $3.68 a gallon Wednesday in the Roanoke Valley, down from $3.96 a month ago and up from $2.62 a year earlier.