Published: July 23, 2008 04:21 pm            

PAIN AT THE PUMP: Buyers’ Fuel Cost Concerns Are Evident On Car Lots

Part II In a Series

LONDON—Pain at the pump is increasingly driving consumers to car dealerships, where they’re choosing smaller, more fuel-efficient cars over gas-ravenous trucks and SUVs.

In May, for the first time since 1992, a sedan was the top-selling vehicle in the country, with the Honda Civic ousting Ford’s long-standing top seed, the F-series pickup.

It’s a turn in tide expected to continue. Kentucky dealerships have seen a big jump in the sales of fuel-efficient and hybrid cars as gas prices continue to rise. Especially in demand are hybrid cars, which run on a combination of gas and electric power.

People are putting their names on waiting lists to get their hands on one, regardless of the color or the vehicle’s features. The Toyota Prius is particularly popular.

“Even brochures are on back order,” said Wes Daulton, a sales representative at Toyota of Somerset. “Every time you have a price hike you have people stopping.”

“We’re getting calls on (the Prius) constantly,” said Robert Daniel, a sales and leasing consultant at Gambrel Toyota in Corbin. “Some people are desperate, they really are. We’re getting e-mails from all over the eastern United States.”

The much discussed Smart car, a tiny two-seater that has been Europe’s answer for good gas mileage, is another hot pick.

The cars, which get 45 miles to the gallon, are sold at Sam Swope Auto Group in Louisville, the only franchise in Kentucky to sell the cars.

Already, the word is out.

“There’s a waiting list on those,” said Norman Walker, vice president for marketing at Swope.

But as small car sales are up, the SUV and truck markets are suffering.

“If you have a big truck or SUV on your lot, it’s hard to get rid of them,” Daulton said. He pointed to one used 2007 Chevrolet Silverado sitting on the lot.

“The book price is $37,000,” he said. “We’re selling it for $31,000.”

Bobby Kidd, of Kidd’s Auto Store in London, has seen similar slashes.

“They have slowed down considerably,” he said. “On the flip side of that, it’s a very good time to buy them.”

Those drops have not been noted across the board, however.

“The only trucks that have really been hurt have been the diesels because diesel is more expensive than gas,” said Sherman Clark, new car manager for Tincher-Williams in London. “The folks who buy SUVs are still buying those.”

Indeed, car sales representatives agree there is still a market for SUVs and trucks — especially for those who tow boats or RVs, or have large families.

“I had a woman with a Suburban come in,” Walker said. “She has seven kids. But the number of miles she drives per day is low. They’re going to drive to Florida this summer in the Suburban. But that’s cheaper than flying. And it’s cheaper than having to take two cars.”

Shawn McGreevy, a sales representative at Jeff Wyler Honda in Florence, agreed.

“There’s still a market for the SUV,” he said. “It’s a good time to buy them.”

Dealers expect SUVs, and larger cars in general, to survive because manufacturers are making them more fuel efficient. Many of them already are, Walker said.

“It’s kind of been an unwritten story, but you have full-size Buicks and Pontiac vehicles like the G5, G6 and The Vibe that are getting 30-plus miles to the gallon,” he said.

While cars get more fuel efficient, drivers are getting more fuel conscious.

“(Gas prices) are getting people to reflect on how they drive, what they drive and where they drive,” Walker said. “It’s part of the decision-making process now.”

Customers are not above being piqued at the pump, however.

“They’re pretty frustrated about it,” Kidd said. “It’s just the gas prices in general. I guess they feel the government hasn’t done enough. It’s basically another car payment to drive your car.”



Tara Kaprowy writes for The Sentinel-Echo in London. She can be reached by e-mail at tkaprowy@sentinel-echo.com.

        

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