SUV sales remain steady despite high gas prices
Published 5:00 am Monday, May 31, 2004
Higher gas prices are not having a major effect on the sales ofgas-guzzling sports utility vehicles (SUVs) at area automobiledealerships, according to sales managers, but customers are muchmore interested in gas mileage now.
“(Gas mileage) is a factor affecting the market, but it’s notcontrolling the market,” said Rick Ezell, general sales manager atJeff Wilson Chrysler/Dodge/Jeep/Toyota. “When (the high gas prices)first started, it was affecting us to the point that we were reallyworried about it. Now the market has rebounded very well. Peoplehave accepted it and are back to their day-to-day lives.”
Kenny Lofton, sales manager at Sullivan Ford/Lincoln/Mercury,agreed. Sales have been stable throughout the market without anoticeable dip or climb in either SUV or small car sales, hesaid.
“Surprisingly, it really hasn’t had a large effect on the SUVmarket,” Lofton said. “On the other side, we are hearing a lot morefrom customers about gas mileage, and that’s something we haven’tseen in quite some time.”
According to Lofton, shoppers interested in SUVs know what theywant in a vehicle and come to the dealership already armed withthat knowledge. They just want to know how much it’s going to costthem.
Car shoppers, however, are paying more attention to mileage, butonly as a factor in their deliberations, he said.
“It hasn’t seemed to control their options,” Lofton agreed.
Ezell cited new manufacturer incentives, new models and thebeginning of the summer months, when sales are traditionally good,as effective counters that have kept the market stimulated despiteincreased costs at the pumps.
In addition, he said, concerns about gas mileage have actuallyserved to boost sales of smaller vehicles boasting higher mileagerates.
“Cars were doing exceptionally well while the SUVs and truckssuffered because of the initial concerns,” Ezell said. “Now, saleson both types of vehicles are up. I guess we have the best of bothworlds right now.”
Paul Barnett of Paul Barnett Nissan agreed.
“We’re seeing more interest in the high mileage vehicles,” hesaid. “There has always been interest in lower cost vehicles, butnow they’re also comparing gas mileages. People talk about high gasprices, but sales haven’t been impacted much by it.”
Adam King, sales manager for Stan King Chevrolet, said highergas prices are having some impact on consumers’ buying options asthey compare different vehicles.
“We’ve been trading for a whole lot of (SUVs),” he said.”They’re trading them in for cars that are more economical, thatget better gas mileage.”
Not all of those customers cite gas mileage as the reason forthe trade-in, King said, but it is a cause for concern for nearlyall of them.
Small and mid-size SUVs are holding steady, but sales on thefull-size models are down slightly, he said.