Gas Prices Prompt Drivers to Downsize
Wichita Eagle
June 6, 2007
Jeremiah Unruh loved his BMW X3. The luxury SUV was fun to drive. With gas prices rising, it also was expensive to drive, though Unruh admits that among the vehicles he's owned -- pickups and larger SUVs among them -- the BMW was pretty fuel-efficient.
About four months ago, the real estate agent got out of his two-year lease about a year early. He went through a Web site, www.leasetrader.com, which matches people trying to get out of a lease with people trying to take one over.
So far this year, the site has seen a 30 percent increase in SUV trades, said Sergio Stiberman, its president. About 60 percent of those customers have gotten into a much smaller vehicle. Gas prices have been a big reason, he said.
Unruh got out of his lease and bought a 2005 Honda Accord. He said he paid $275 to Leasetrader.com and $225 to BMW.
But he figures he has made up that money in lower fuel costs.
"Gas was a factor, definitely, with prices over $3 a gallon," he said. "And they've risen more since I got rid of it."
Unruh also recently sold his lawn-mowing business of 13 ½ years, primarily because of gas prices.
The truck he used got 8 to 9 miles per gallon, and it cost a lot to fuel his mowers, he said.
Unruh said he has become more conscious about gas consumption since prices rose.
"It does make you think about it," he said. "You don't think about it when it's $1 a gallon."
Demand remains
Gary Gillette first listed his midnight-blue 2004 Dodge Durango Limited SUV in the paper in January 2006. After at least six months of waiting for interested buyers to call, he pulled the ad.
It wasn't until March that he and his wife finally got rid of the SUV, which averaged 14 miles to the gallon. They traded it in for a 2007 Toyota Prius. He said he still fills the Prius up once a week, but the tank only holds about nine gallons.
"We were just trying to get something that was more economical," he said.
Gillette said trying to sell the Durango was frustrating. But, he said, if he could've reached the right market, he probably could've sold it himself.
"They're very good for towing," he said of SUVs. "But the other 300 days of the year, when you're not towing something, you're paying a lot more for gas."
Local car dealers say they still see a demand for SUVs and full-size trucks. Sales have remained steady even after gas topped $3 a gallon, said Jill Hattan, general manager of Don Hattan Chevrolet.
"They're still our best sellers -- new and used," she said. "I would say we're getting used to and spoiled by the room they provide -- the space. It's hard to give that up, I guess."
For some, big is better
Cynthia Barger has eight kids and said her family relies on their SUVs to get them around Derby.
The family is trying to sell a 2006 Honda Pilot because they've decided it would be a wiser use of money to drive their 11-year-old Suburban, which is paid off.
"We love the vehicle. It has nothing to do with the fuel," she said of the Pilot. "It has to (do) with making better choices."
Those choices also include playing cards at home instead of going to the movies and taking one car to church instead of two or three to offset higher gas costs, she said.
"If the gas prices are going to make a difference, that's where it's going to have an effect -- not in selling your car," she said.
But fuel economy is more of a priority for her two college-age daughters and her 16-year-old son, who pay for their own gas.
Some people, like Leroy Roduner, just like to drive larger vehicles.
He is selling the 2007 Chevrolet Silverado he bought in January, but said he's already bought a Ford F-150 Diesel truck to replace it. And he's looking to sell his wife's 2005 Honda Accord so they can buy a new Tahoe.
"She's been two winters without four-wheel drive, and she doesn't want to do that ever again," he said.
For people who might like a larger vehicle or a more luxurious one, lease trading can make sense, said Leasetrader.com's Stiberman.
When you take over someone else's lease, you don't have to pay the down payment. And you can have a shorter commitment time.
His Web site works only with closed-end leases, where you have the option to buy the vehicle at the end of the contract or simply return it to the leasing company.
Unruh said the process was easy.
Stiberman said he spoke recently to someone who took over a Hummer lease for 12 months.
"He said it was an opportunity to treat himself," Stiberman said.
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com.
Print | posted on Wednesday, June 06, 2007 8:02 PM