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Drivers of SUVs ignore gas cost
Auto dealerships don't feel a change
By MARY LOU PICKEL
The Atlanta Journal-Constitution
Published on: 03/19/04
Otha Robinson really likes his seven-passenger Ford Expedition sport utility vehicle. Gasoline prices are hovering near record highs, but he's not worried ? yet.
"I like the room and I got a lot of friends," Robinson explained as he pumped gas at a QuikTrip in Decatur for $1.68 per gallon.
Robinson, 32, says it takes $40 to $50 to fill the tank these days. His Friday purchase was only $26.87 because he still had some fuel in the tank.
Nearby, Kathy Holt of Lithonia pumped gas into a GMC Yukon. She said she could never leave it for a smaller vehicle.
"I have to have an SUV," she said. Her husband uses it for his landscaping business, and now she's used to it.
Car dealers say they see no dampening of metro Atlanta's love affair with SUVs amid rising gas prices. A vehicle purchase is a lifestyle decision, they say. Buying trends are not born, and do not die, based on what people believe are temporary fluctuations in gas prices.
"I have not run into a lot of fuel-conscious people," said George Underwood, part-owner and general manager of Lou Sobh Ford on Scott Boulevard. "I think that people are certain that prices are going to come down, because they've fluctuated in the past."
Indeed, current prices are about what they were a year ago, after a dip. But the recent run-up is forecast to last well into the spring and summer, rather than quickly subsiding. That could test the resolve of people who drive lots of miles in large vehicles.
Underwood sells a variety of SUVs, including Expeditions, Explorers and the enormous Ford Excursion, which has a 44-gallon gas tank and gets about 10 miles a gallon in combined city and highway driving, according to Consumer Reports magazine. At today's prices, it costs about $73 to fill up an Excursion.
Business this winter was the worst it's been in 10 years, Underwood said, but March has been a bright spot. On Friday, Ford came out with a $1,000 rebate on the Expedition.
At Bill Heard Chevrolet in Kennesaw, sales manager Michael Johnson says SUV sales are steady. "The Atlanta area [has] the lowest gas prices in the country, so that's the good thing about it," he said.
The popular Chevrolet Tahoe has a 26-gallon tank and costs about $43 to fill up. The Tahoe gets about 16 miles per gallon in mixed driving.
CarMax, a chain of used-vehicle dealerships, hasn't seen any change in buying patterns either, said company spokeswoman Lisa Van Riper. The SUV is still a strong seller there.
"What we have found is that people buy the SUVs because they could be adding to their family or they could have a career where they need some extra space in their car," Van Riper said.
But some people are, in fact, thinking about gasoline costs at the pump.
Robinson, the Expedition driver who filled up Friday in Decatur, said he'll consider changing his behavior if gas hits $1.80 per gallon. "I'd either get rid of it or carpool."
Full Article Here
Auto dealerships don't feel a change
By MARY LOU PICKEL
The Atlanta Journal-Constitution
Published on: 03/19/04
Otha Robinson really likes his seven-passenger Ford Expedition sport utility vehicle. Gasoline prices are hovering near record highs, but he's not worried ? yet.
"I like the room and I got a lot of friends," Robinson explained as he pumped gas at a QuikTrip in Decatur for $1.68 per gallon.
Robinson, 32, says it takes $40 to $50 to fill the tank these days. His Friday purchase was only $26.87 because he still had some fuel in the tank.
Nearby, Kathy Holt of Lithonia pumped gas into a GMC Yukon. She said she could never leave it for a smaller vehicle.
"I have to have an SUV," she said. Her husband uses it for his landscaping business, and now she's used to it.
Car dealers say they see no dampening of metro Atlanta's love affair with SUVs amid rising gas prices. A vehicle purchase is a lifestyle decision, they say. Buying trends are not born, and do not die, based on what people believe are temporary fluctuations in gas prices.
"I have not run into a lot of fuel-conscious people," said George Underwood, part-owner and general manager of Lou Sobh Ford on Scott Boulevard. "I think that people are certain that prices are going to come down, because they've fluctuated in the past."
Indeed, current prices are about what they were a year ago, after a dip. But the recent run-up is forecast to last well into the spring and summer, rather than quickly subsiding. That could test the resolve of people who drive lots of miles in large vehicles.
Underwood sells a variety of SUVs, including Expeditions, Explorers and the enormous Ford Excursion, which has a 44-gallon gas tank and gets about 10 miles a gallon in combined city and highway driving, according to Consumer Reports magazine. At today's prices, it costs about $73 to fill up an Excursion.
Business this winter was the worst it's been in 10 years, Underwood said, but March has been a bright spot. On Friday, Ford came out with a $1,000 rebate on the Expedition.
At Bill Heard Chevrolet in Kennesaw, sales manager Michael Johnson says SUV sales are steady. "The Atlanta area [has] the lowest gas prices in the country, so that's the good thing about it," he said.
The popular Chevrolet Tahoe has a 26-gallon tank and costs about $43 to fill up. The Tahoe gets about 16 miles per gallon in mixed driving.
CarMax, a chain of used-vehicle dealerships, hasn't seen any change in buying patterns either, said company spokeswoman Lisa Van Riper. The SUV is still a strong seller there.
"What we have found is that people buy the SUVs because they could be adding to their family or they could have a career where they need some extra space in their car," Van Riper said.
But some people are, in fact, thinking about gasoline costs at the pump.
Robinson, the Expedition driver who filled up Friday in Decatur, said he'll consider changing his behavior if gas hits $1.80 per gallon. "I'd either get rid of it or carpool."
Full Article Here
