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September 25, 2005

Gas misers selling fast

Lots of SUVs are being traded in

By
Record-Eagle staff writer

      GAYLORD - Soaring fuel costs and gas mileage were the first things Jeanie McMichael asked about when she cruised local car lots for a used vehicle.
      "Because of the cost of gas. I don't have a lot of money for that," said the 55-year-old Gaylord woman.
      McMichael chose a gas-stingy 2003 Pontiac Vibe and delivered a cashier's check to the dealership Friday. She'll haul home repair supplies and tools in the vehicle, and said she never considered buying a "gas-guzzler."
      "I don't need that power," she said.
      She's not alone in that sentiment, as consumers turn away from low-mileage vehicles amid soaring gas prices in the wake of hurricanes Katrina and Rita and the war in Iraq.
      Northern Michigan shoppers continue to buy new and used vehicles, but dealers agree that smaller, more fuel-efficient cars are outselling big trucks and sport utility vehicles, and breaking a longtime trend.
      More customers ask about hybrid models and most want to know miles-per-gallon ratings, dealers said.
      Jeff Nowak, sales manager at Jim Wernig Chevrolet in Gaylord, said recent gasoline cost spikes dented SUV and truck sales by up to 40 percent. Sales of passenger and compact cars are up by an equal margin, he said, particularly models such as the Chevrolet Malibu, Cobalt and Aveo.
      "We're selling cars, just different types. I think a lot of people are nervous when it comes to fuel costs," Nowak said.
      He wanted to stock a couple new Chevy hybrid pickups, but was unable to order any from the sold-out manufacturer. Nowak said he thinks he would have quickly sold them.
      Andy Wichern, sales manager at Williams Honda in Traverse City, said hybrid sales are up 10 or 15 percent over last year.
      "Before, it was more of a novelty. Now people are becoming more aware. We can't keep them in stock," he said.
      Among the Chevrolet, Honda and Kia divisions at Williams, Wichern said three in 10 customers ask about miles-per-gallon ratings before a salesperson mentions it. And many are trading in big SUVs and trucks, he said.
      Other dealers also see shifting consumer tastes.
      "The trend is for passenger cars again," said Marcus Matelski, sales manager at Wagar Motor Sales in Gaylord. "We're not selling the big stuff."
      Matelski said customers are trading in so many SUVs and trucks that the market has turned sluggish.
      His dealership now orders fewer new GMC Yukons and more of the Pontiac Vibe and G6, he said.
      Dealers believe a market for gas-powered SUVs and large trucks will linger, and Matelski said there already are more efficient engines in larger vehicles, such as the GMC Envoy, which cuts down to four cylinders on highways.
      And he wonders if gas cost savings will make hybrids' $5,000 replacement battery worthwhile.
      "We're set up for gasoline. That's all there is to it," Matelski said.
      Nowak said he's not seen SUV and truck trade-ins at his business, and he hasn't heard customers asking about hybrids. Instead, customers are buying smaller, more fuel-efficient cars to add to the family fleet, he said.
     

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