News

October 30, 2009

Fuel efficiency no longer rally cry of auto buyers

One dealer says it appears $3 per gallon is magic line that prompts changes in purchasing habits.

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
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The average price per gallon of gasoline in the greater Wilkes-Barre region hit a high for the year on Wednesday, then rose further Thursday, but the price isn’t having much affect on automobile shoppers, local dealers say.

At $2.76 per gallon for regular unleaded, Wilkes-Barre area motorists were paying 5 cents more a gallon on Thursday than they were one year ago, a dime more than one week earlier and about a quarter more than what they were ponying up the prior month.

Even with the steep rise in prices the past 30 days, prices are nowhere near the all-time record high set in July 2008 when the $4 threshold was crossed by six cents. That caused many people to say they would make changes in their driving styles.

Pleasure travel declined, carpooling became more popular, four-day work weeks were implemented, SUVs were out, and hybrids were all the rage.

Fuel efficiency became the rallying cry and car manufacturers were quick to point out which models offered the most bang for their buck at the pumps.

But as the price of gas dropped, first back below $4 then below $3 and at one point, on Jan. 2, to $1.67 per gallon, those new habits were pushed aside by many.

“Haven’t heard much about gas mileage (from customers) the past 90 days,” said Rich Crossin, general manager at Bonner Chevrolet in Kingston.

Other local dealerships said they’ve seen no changes in sales or patterns since gas prices started climbing a month ago and they don’t expect to unless the $3 plateau is crossed.

That’s something a spokeswoman for AAA-Mid-Atlantic predicted would not happen anytime soon.

“It’s highly unlikely,” said Catherine L. Rossi, with the national auto club. “We have ample supply and low demand,” she said. “But we have refineries that have trimmed production.” She said that’s partly to blame for the recent spike, but she said it should be short-lived.

Earl Berger, owner of the Berger Family Dealerships in Hazle Township, believes prices will drop again in the coming months. He said SUV and truck sales are strong and he has not seen customers request more fuel-efficient vehicles in the past few weeks.

Other dealers are seeing the same trend.

“SUV and truck sales are well ahead of last year, even taking out the spike we saw from Cash for Clunkers,” said Ken Wallace Jr., of Valley Chevrolet in Wilkes-Barre.

Berger said “we still can’t keep SUVS on the lot.” He said $3 per gallon is the magic line that will prompt changes in purchasing habits. Wallace set the line a bit higher, maybe $3.30.

“That’s when panic starts to set in,” Wallace said.

Crossin said the price range currently in effect “anybody can live with. But when we start creeping up to $3 it’s a different story.” Add 50 cents more and, well, “That’s when the SUV sales start to die and the Cobalts start to sell,” he said.

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