Gas prices affect U.P. auto sales
Posted: 05.10.2011 at 1:46 PM

More buyers are focusing on fuel efficient vehicles

IRON MOUNTAIN -- Dan Kreski bought his 2011 Chevrolet Silverado last October.  But after a trip to Arizona, he noticed the fuel economy was less than advertised, a fact highlighted by rising gas prices.

"With the gas prices at four dollars per gallon, it becomes a little bit more important than it was when it was $2.50 per gallon," said Kreski.  "It's a pretty big deal now."

Gas prices are also influencing buyers looking for a new vehicle.  Trucks are normally the hot sales item for dealerships like Edwards Automotive, consisting of 50 percent of their vehicle sales.

But high gas prices are changing buyer habits.

"I think we're seeing more people coming in looking for a different type of vehicle," said Edwards Automotive Sales Manager Wade Edwards.  "[They] are looking for a more fuel efficient smaller car, fuel efficient crossover, rather than the big full size SUV.  So we're seeing a much different type of vehicle we've been selling in the last month or so."

Nationally, several manufacturers reported big gains in April due to the strong demand for fuel efficient vehicles.

General Motors is up 27 percent and Hyundai is up 40 percent compared to this time last year.

As for Kreski, he doesn't regret buying his Silverado but said he is smarter about driving it.

"Watching your trips, doubling up, making sure you have your do-it list when you go to town so you don't have to make two or three trips," he said.

Edwards said as long as gas prices stay high, he expects fuel efficient vehicles to remain popular.