By Charles Passy
Palm Beach Post Staff Writer
Monday, May 08, 2006
If you drive a big SUV, it can cost $100 these days to fill your tank with regular.
That's a hefty chunk of change — and it's starting to shape what Americans choose to drive.
Guide: Local gas prices
"It seems like the trend right now is more people are looking at fuel efficiency," says Dan Cody, sales manager of Roger Dean Chevrolet in West Palm Beach.
The numbers tell the story: In April 2006, sales of new large SUVs — think the GMC Envoy and Dodge Durango — dropped 33.3 percent from two years ago. Sales of the mid-sized Ford Explorer SUV, which ranked among the five best-selling vehicles in the country as recently as 2002, fell a steep 42.1 percent in the past year.
Another sign that Americans are itching to get out of their gas guzzlers: Manufacturers are offering plum incentives — up to $6,000 in cash or 0 percent financing — on some hard-to-sell models. Little wonder these fuel-thirsty vehicles are gathering dust on dealers' lots, especially compared to their more fuel-efficient counterparts.
DaimlerChrysler executive Gary Dilts told the Detroit Free Press that its Dodge dealers have a 120-day supply of Ram pickups, which get just 9 to 16 miles per gallon in city driving. By contrast, those same dealerships have a mere six-day supply of the new 2007 Caliber hatchback, which gets 23 to 27 miles per gallon.
Some SUVs remain hot, however — luxury SUVs and 2007 models that have been revamped for better gas efficiency.
For example, Hummer, that symbol of the gas-greedy American, saw its sales increase by more than 200 percent — from 1,700 vehicles in April 2005 to 5,413 in April 2006.
"It's all a matter of discretionary income," says Earl Stewart, who owns Earl Stewart Toyota in Lake Park.
In other words, if you can afford a car that costs as much as $53,000, you can afford to fill its 20-plus-gallon tank — even at $3 or more per gallon.
Stewart adds that he still sees strong interest in the Toyota Land Cruiser, a luxury SUV that goes for as much as $56,000 and gets 13 miles per gallon in city driving.
In the mid-priced category, redesigned — for 2007 — SUVs such as GM's Chevrolet Tahoe, Cadillac Escalade and GMC Yukon are selling well.
The 2007 Tahoe, for example, gets a few more miles per gallon than its predecessor. Sales are up more than 30 percent, according to a published report.
Another key point when it comes to what's selling: You can't judge South Florida by the rest of the nation when it comes to car sales.
If anything, dealerships in Palm Beach County and the Treasure Coast say ours is an affluent market that's less likely to let a sudden rise in gas prices influence buying decisions.
At Advantage Ford in Stuart, General Sales Manager Michael Luciano says that 75 percent of his customers "are just taking it all in stride."
"Sales were brisk for April ... (gas prices) didn't really adversely affect our large SUVs," he says.
That could change, industry experts warn.
"I think the shift has started," says Jesse Toprak, an executive analyst with Edmunds, which charts sales data.
Toprak adds that when gas was below $2 a gallon, it was easy for consumers to ignore fuel efficiency.
But now? "I saw $3.80 for premium!" he says.
Mark Perleberg, of the National Automobile Dealers Association, says the tipping point may be less about price and more about availability. If consumers have to wait in line for gas, as they did during the fuel crisis of the '70s, they'll realize there's a price beyond the price per gallon, and they'll respond by buying more fuel-efficient vehicles.
"My feeling is that's the button," says Perleberg.
But until such a panic emerges — or perhaps in spite of it — there may still be car buyers like Susan Cammarano, a Jupiter grandmother who needs a vehicle big enough to handle strollers, kids and their gear. And who wants to make a fashion statement while she's at it.
So, when Cammarano went car shopping a few weeks ago, she looked past the more fuel-efficient midsized sedans and even the minivans — the very sort of vehicles that, in her words, cry out that "you're old."
Instead, she bought a Chevy TrailBlazer SUV, noting that not only does it fit her active image, it may also prove to be a relative bargain — the $3,000 cash allowance she received will likely be as good as any gas savings she'd reap with another vehicle.
"I'm very happy with it," says Cammarano of her SUV.
Palm Beach Post Staff Writer
Monday, May 08, 2006
If you drive a big SUV, it can cost $100 these days to fill your tank with regular.
That's a hefty chunk of change — and it's starting to shape what Americans choose to drive.
Guide: Local gas prices
"It seems like the trend right now is more people are looking at fuel efficiency," says Dan Cody, sales manager of Roger Dean Chevrolet in West Palm Beach.
The numbers tell the story: In April 2006, sales of new large SUVs — think the GMC Envoy and Dodge Durango — dropped 33.3 percent from two years ago. Sales of the mid-sized Ford Explorer SUV, which ranked among the five best-selling vehicles in the country as recently as 2002, fell a steep 42.1 percent in the past year.
Another sign that Americans are itching to get out of their gas guzzlers: Manufacturers are offering plum incentives — up to $6,000 in cash or 0 percent financing — on some hard-to-sell models. Little wonder these fuel-thirsty vehicles are gathering dust on dealers' lots, especially compared to their more fuel-efficient counterparts.
DaimlerChrysler executive Gary Dilts told the Detroit Free Press that its Dodge dealers have a 120-day supply of Ram pickups, which get just 9 to 16 miles per gallon in city driving. By contrast, those same dealerships have a mere six-day supply of the new 2007 Caliber hatchback, which gets 23 to 27 miles per gallon.
Some SUVs remain hot, however — luxury SUVs and 2007 models that have been revamped for better gas efficiency.
For example, Hummer, that symbol of the gas-greedy American, saw its sales increase by more than 200 percent — from 1,700 vehicles in April 2005 to 5,413 in April 2006.
"It's all a matter of discretionary income," says Earl Stewart, who owns Earl Stewart Toyota in Lake Park.
In other words, if you can afford a car that costs as much as $53,000, you can afford to fill its 20-plus-gallon tank — even at $3 or more per gallon.
Stewart adds that he still sees strong interest in the Toyota Land Cruiser, a luxury SUV that goes for as much as $56,000 and gets 13 miles per gallon in city driving.
In the mid-priced category, redesigned — for 2007 — SUVs such as GM's Chevrolet Tahoe, Cadillac Escalade and GMC Yukon are selling well.
The 2007 Tahoe, for example, gets a few more miles per gallon than its predecessor. Sales are up more than 30 percent, according to a published report.
Another key point when it comes to what's selling: You can't judge South Florida by the rest of the nation when it comes to car sales.
If anything, dealerships in Palm Beach County and the Treasure Coast say ours is an affluent market that's less likely to let a sudden rise in gas prices influence buying decisions.
At Advantage Ford in Stuart, General Sales Manager Michael Luciano says that 75 percent of his customers "are just taking it all in stride."
"Sales were brisk for April ... (gas prices) didn't really adversely affect our large SUVs," he says.
That could change, industry experts warn.
"I think the shift has started," says Jesse Toprak, an executive analyst with Edmunds, which charts sales data.
Toprak adds that when gas was below $2 a gallon, it was easy for consumers to ignore fuel efficiency.
But now? "I saw $3.80 for premium!" he says.
Mark Perleberg, of the National Automobile Dealers Association, says the tipping point may be less about price and more about availability. If consumers have to wait in line for gas, as they did during the fuel crisis of the '70s, they'll realize there's a price beyond the price per gallon, and they'll respond by buying more fuel-efficient vehicles.
"My feeling is that's the button," says Perleberg.
But until such a panic emerges — or perhaps in spite of it — there may still be car buyers like Susan Cammarano, a Jupiter grandmother who needs a vehicle big enough to handle strollers, kids and their gear. And who wants to make a fashion statement while she's at it.
So, when Cammarano went car shopping a few weeks ago, she looked past the more fuel-efficient midsized sedans and even the minivans — the very sort of vehicles that, in her words, cry out that "you're old."
Instead, she bought a Chevy TrailBlazer SUV, noting that not only does it fit her active image, it may also prove to be a relative bargain — the $3,000 cash allowance she received will likely be as good as any gas savings she'd reap with another vehicle.
"I'm very happy with it," says Cammarano of her SUV.