Big cars not leaving lots

Published 12:00 am Friday, July 18, 2008

NATCHEZ — As the price of fuel seems to be on a limitless assent local auto dealers are seeing the repercussions — for better and worse.

Brad Yarbrough, owner of Natchez Ford and “Performance Dodge,” said the high cost of fuel has had a noticeable impact on his sales and not for the better.

Yarbrough said though he is not surprised by the decline in sales of trucks and SUVs, he is surprised by how much sales have dropped.

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Yarbrough estimated sales of trucks and SUVs have dropped approximately 30 percent over the past three years.

Similarly, the manager of Great River Chevrolet, Cadillac, GMC Eddie Thompson said he has seen sales of trucks and SUVs decline approximately 20 to 25 percent.

“There’s a trend toward passenger cars,” he said. “But people still want comfort.”

Thompson said while he has seen an increased interest in more economical cars and hybrids, many still prefer the larger vehicles.

Thompson said while some buyers have a need for large SUVs or heavy-duty work trucks, many just like the comfort of larger SUVs and trucks.

Both Yarbrough and Thompson both said many consumers still purchase trucks and SUVs for their size and comfort after examining more fuel-efficient vehicles.

“Some people at this point just aren’t willing to give them up,” Yarbrough said.

Though some drivers are not willing to give up the big vehicles, many have.

Thompson said sales of big trucks and SUVs have dropped enough that the lot is stocking fewer to sell.

And those who have made the switch to smaller cars are doing so with gusto.

General manager of East Honda Pontiac Buick, Carl Rogel, said he is having a difficult time stocking enough fuel-efficient cars to sell.

“People are really looking at their mileage,” he said.

Rogel estimated he is selling three times the amount of Hondas from this time last year.

“We’re selling them right off the truck,” he said.

Of the Hondas, the Civic and Accord are top sellers, Rogel said.

Rogel said the high cost of gas has greatly decreased the value of many pricey SUVs, leaving the owners in a bind.

“They want to get rid of them,” he said. “But the value is down on them.”

Rogel said some SUV owners are so willing to rid themselves of big SUVs they will sell them at a financial loss to buy a more fuel friendly model.

And SUV owners are not the only ones losing money.

City Clerk Donnie Holloway said he is confident the decreased sales at some auto dealers have lessened the sales tax collected by the state.

“It’s a negative impact for them,” he said of the state.

Holloway said the taxes not going to the state as a result of decreased sales ultimately equates to money not coming into the city.

Since the State Tax Commission does not release tax records Holloway said it would be difficult to determine exactly how much money had been lost.

But for now some of those bigger vehicles will continue contributing to the state’s tax coffers.

Yarborough said he believes before a substantial number of drivers would stop driving SUVs and trucks, gas would have to hit $6 a gallon.