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Bend-based Bob Thomas Car Co. plans to move its Honda dealership from its current Third Street location southeast of downtown to a 3.4-acre lot just north of Wal-Mart, the car dealer's owner said Monday.

The move, expected in two years, is the second announcement this year that a dealership is moving to the southern stretch of Third Street to get more space.

For Bob Thomas, who sells General Motors brands Chevrolet and Cadillac as well as Hondas at his current location, the Japanese vehicles' popularity validated the need to separate Honda and expand.

"In order to have a stand-alone dealer, you want to have at least 400 to 500 units (sold) a year," Thomas said. "And we're already on that pace (with Honda sales)."

Thomas will keep his GM dealership at its current location.

For the new Honda site, city officials said in a preliminary application report that the dealership needs to address traffic the site will generate. A third party will prepare a traffic analysis, Thomas said.

Another dealer of Japanese vehicles, Toyota-Scion of Bend, said in March that it's moving from its current location on U.S. Highway 20 to a lot adjacent to Mercedes-Benz of Bend on Southeast Third Street.

High fuel prices nationally have benefited brands like Toyota and Honda, which both have popular models, such as the electric-hybrids, with high fuel economy. In addition, the companies are less reliant on sport-utility vehicles than domestic manufacturers, further insulating them from the current dip in SUV sales.

Thomas said Honda sales have surpassed the combined sales of the GM brands at his dealership and are growing at a rate of 20 percent to 30 percent per year.

"Honda is very in-tune with the market," Thomas said. "They're building cars people want."

The head offices of Honda and GM have wanted separate dealerships in Bend, Thomas said, but the sales volume necessary for stand-alone dealers did not materialize until recent years, as the city's growth accelerated.