Sales of trucks, SUVs rise as gas prices fall

San Bernardino Sun
December 7, 2008

CLAREMONT - Americans are once again embracing their gas-guzzling sport-utility vehicles.

Falling gas prices and manufacturers' incentives are making SUVs and trucks more affordable.

"My business has tripled in the last month," said Michael Wilcock, a fleet manager at Richard Hibbard Chevrolet in Claremont.

Trucks and SUVs make up more than half of the dealership's inventory.

Five diesel trucks rolled off the lot over the Black Friday weekend, when retailers traditionally go into the black, or show a profit.

"We were swamped," said Stacy Queen, Internet sales manager.

These days, Queen gets five to 10 calls a week asking for price quotes on Tahoes or Suburbans.

"We reached 60

Mark Wiseman fills up his brand new Dodge Ram truck last week in Ontario. Lower gas prices and dealership incentives have encouraged many to purchase SUVs and trucks. (Mediha Fejzagic DiMartino/Staff Photographer)

percent of our sales goal by the middle of November," he said.

When the price of a gallon of gas exceeded $4, Wilcock noticed customers pulling back from purchasing new cars.

"Consumers consider buying trucks and SUVs only when they can afford putting fuel in them," Wilcock said. "They would push the old truck a couple years longer instead of buying a new one."

Queen said a customer in August asked him to fill her Suburban. When the nozzle flipped off, the price dial stopped at $110.

"I've never seen a gas pump with that many numbers," he said.

Along with falling gas prices, manufacturers' incentives are luring customers back to the lots.

Discounts such as employee and supplier pricing can bring the vehicle price $2,000 below invoice.

Manufacturers "are trying to move the model year," Queen said.

Meghan Toles of Upland picked out a black Chevy Silverado at the dealership last week. She's been longing to buy a truck for the past five years. Now that gas prices have dipped below $2 a gallon, she felt good about her purchase.

"I always drove little squirty cars," Toles said. "I feel like it's OK to purchase the truck again. The $7,000 instant rebate only sweetened the deal."

Sports cars such as Corvettes are 10 percent less than they were selling for six months ago.

"Pricing we see now are figures you expected to pay two or three years ago," Wilcock said.

Last month, Mark Wiseman traded his Mercury Sable sedan for a new Dodge Ram truck. The Redlands' dealership paid off his old car and gave him $6,000 cash back.

Wiseman also anticipated the drop in gas prices.

"I bet a couple friends $200 that gas will be under $2 by January, and I won," Wiseman said.

On Tuesday, he pulled up to the gas pump in his shiny blue truck, the temporary license still taped in the place of his licence plate.

"For $20, I got a half a tank," Wiseman said.