Gas fuels sales trend

Matt and Kathy Edwards drove away in the 2005 Honda Accord they'd just purchased at the Yuba City Honda dealership. The couple said they went with Honda because they knew it was reliable and gets good gas mileage.

They're not the only ones.

With gas well above $4 in the Yuba-Sutter area, drivers locally — and nationally — are looking for ways to cut costs and save on gas.

According to the Federal Highway Administration, Americans drove 1.4 billion fewer miles in April than in April 2007.

The agency, which is under the U.S. Department of Transportation, also noted that sales of mid-sized SUVs were down 38 percent in May compared to sales a year ago.

Jim Turner , general sales manager for Wheeler Chevrolet Oldsmobile Cadillac Jeep Mazda, said he's noticed the trend, but said customers are scarce for any purchase.

"The market is very volatile," Turner said. "I've been in this business for over 40 years and I can't for a second say what the market will be like today or tomorrow."

Over the past few weeks, Turner said, customers have trickled on the lot in search of a vehicle, but when those customers come in is unpredictable.

And gas is not always the driving force.

Turner said the Chevrolet, Mazda, Jeep dealer is still selling some of the larger vehicles, but not at the same rate they used to.

"We have people that need these types of vehicles," Turner said. "The market's different here. People have families and they are used to hauling people."

Last week, Turner said, a customer had come to the lot looking to buy a large vehicle to replace a small truck he owned.

"He said he was making two trips a day to take his kids to school," Turner said.

Other recent sales, Turner said, were a Chevrolet Tahoe hybrid for a family, and a truck for a catering business.

But, Turner said, fuel-efficient cars are still outselling larger vehicles.

"Sales are all about passenger vehicles now," Turner said. "We sold two Chevy Cobalts in one day, which is a good day at any time."

Turner said General Motors makes seven vehicles with an estimated 30 miles per gallon on the highway, including the Chevrolet Malibu and Impala.

Edwards said he and his wife were in the market for a Honda to replace one that was recently in an accident.

"We went with the four-cylinder because of the price and the gas," Edwards said.

The Accord gets an estimated 31 miles per gallon on the highway and 21 in the city, according to Honda. Edwards said he paid a little more than $20,000 for the used car.

Edwards said he also has a Dodge Ram truck he plans to sell in order to save money.

"Money's important these days," he said.

According to Reuters, which released the 20 top-selling cars of 2008 earlier this month, Honda had two top sellers. The Honda Civic was the No.1 selling car in May with 53,299 units sold in the United States. The Civic gets an estimated 34 miles per gallon on the highway, while the hybrid model gets an estimated 45 miles per gallon.

The Reuters report said the Camry and Corolla from Toyota where slightly behind the Civic. Those sold 52,826 and 51,291 units, respectively. Honda Accord claimed the fourth spot with 49,098 units sold.

Even with the fuel-efficient models driving quickly off lots, the report said the Ford F-Series trucks rounded out the top five, selling 42,973 units.

A Yuba City Honda spokesman said he also has noticed the increase in demand for smaller, gas-saving vehicles.

"Civics and the Civic Hybrids are very popular," said Miki Trajakvski, Honda's sales manager. "We have been busy. Mostly smaller vehicles are selling, like Civics, Civic Hybrid and the Fit."

Toyota representatives could be reached for comment.

According to the dealer's Web site, the auto maker sells six models with an estimated 28 miles per gallon or more. Those models vary in size from the compact Yaris at 39 miles per gallon to the full-size sedan, the Avalon, which gets 28 miles per gallon.

Toyota also makes three hybrid cars, the Prius, Camry and Highlander.

Dow Lewis Nissan co-owner Murry Lewis said his lot also sells at least nine cars with 25 miles per gallon or better under the Nissan, Pontiac, GMC and Buick brands.

"It doesn't have to be small to mean it's fuel efficient," he said. "But we are seeing people buy commuter cars."

Lewis said they are selling small fuel-efficient cars more than the larger SUVs and trucks.

Titan truck and Armada SUV sales "are non-existent, we haven't sold one in several months," Lewis said.

"The price and fuel is affecting sales," Lewis continued. "Because of the fuel price, we are still selling GMCs. There is some increase in small car sales because hybrids are still $5,000 more in price."

Lewis said he also thinks there is still a market for larger vehicles for family or business use.

"I'm married with five kids, am I any better off with two smaller cars?" Lewis questioned.

Trajakvski said they are receiving trade-ins of SUVs and trucks that they do not put on the lot.

"Eighty percent of trade-ins are SUVs to see if they can get a smaller car," Trajakvski said. "We see a lot of (Ford) Expeditions and F-150s. They always want a Civic."

Turner also said area farmers keep diesel truck sales alive even though diesel sales have taken a hit.

"The cost of fuel is hurting diesel," he said.

Contact Appeal-Democrat repor-ter Andrea Koskey at 749-4709 or akoskey@appealdemocrat.com