Gearing up for smaller vehicles
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By Bob Watson
bwatson@newstribune.com
Lawrence Blankenship, a computer repairman, noted he was looking for “just something that's fuel efficient, has space for my tools and my parts and that falls within the price range that I can afford. ... A minivan (or an) SUV (are) exactly what I need, actually.”
His girlfriend, Kristi Clark, wanted something with “some bells and whistles, too,” in addition to the “better gas mileage. ... His work is requiring him to have a new car ... every three years.”
Lisa Beaver's family now owns “a minivan and a Jeep. I'd like to get the same size, with more efficiency.”
The trend has been noticed by the car sales industry. “There has been a shift from the big trucks and the big SUVs to smaller,” said Tom Stegeman, new car sales manager for Mike Kehoe's Ford and Lincoln Mercury dealerships. “But we're still maintaining similar (sales) numbers.”
Jim Myers was negotiating last week for a Nissan to replace his year-old Mazda, looking for “fuel economy and just a little bit bigger car.”
Most national news reports say vehicle sales are sluggish. General Motors announced Tuesday it will close four truck and SUV plants, saying a market shift to smaller vehicles is permanent.
“The market is definitely down - every car manufacturer is going to tell you that,” said Nathan Watts, salesman for Auffenberg Buick-Pontiac-GMC-Mazda. “But anybody who's been in the business awhile knows that it's a roller-coaster ride.
“Every time something happens with the economy, the car business is the first to get hit - and if you just stay on that roller coaster and keep riding, eventually everything will stabilize and come right back, and everything will be fine.”
Said Bernie Hobold, Capital Chrysler-Dodge-Nissan's sales manager: “We're not selling as many big trucks, but otherwise, it's pretty well across the board what we're selling.”
And smaller, economy cars are selling better than in the past.
“I keep hearing this, that the economy is soft. And, I guess, if you read enough in the newspaper, you're going to start believing that. But our sales really aren't down,” said Larry Windsor of Riley Cadillac-Toyota-Scion.
Although people seem to be making a big deal out of the economy, auto makers and dealers always have had to be flexible, said Jay Schnieders, Riley Chevrolet's sales manager.
“Five years ago, we were selling a bunch of trucks. Everybody had to have trucks,” he said. “I think people are still always going to have to have their trucks and big vehicles. ... (But) the people who don't really need the trucks - they're just driving one to look cool - those are the people that we're seeing trading in (trucks) for cars.”
The current trend also has created a glut of bigger used vehicles. “So, all the auctions are full of trucks and big SUVs,” said Kris Graham, new vehicle sales manager for Reagan Honda. “Now, there's no one to buy them, anymore.”
In its nearly two dozen years as an event, the Jefferson City New Car Dealers sale has made adjustments without changing its basic approach.
“It provides a chance for the consumer to come out and look at all the different makes and models in one day,” said Ryan Imhoff, Reagan Honda's sales manager, “whereas normally they're shopping for a couple of weeks, to get from store to store.
“So, it helps us and it helps the consumer.”
Blake and Christy Satterfield were heading for the grocery store when they saw the new cars covering the mall's western parking lots.
“We have a car that gets bad gas mileage, and want one that has good gas mileage,” Blake said.
But they were disappointed the annual sale doesn't promote used vehicles, “because all the new ones right now are not, necessarily, what everyone's looking for,” Blake said.
Christy added: “I think everybody knows the saying that, once you drive the new one off the lot and how much it depreciates, everyone is going to be looking for used.”
See also:
Car buyers doing homework before purchasing
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Byron W. wrote on Jun 19, 2008 6:36 PM: