As the price of gasoline hits the $4 mark and cost of living increases reaching deep into consumers’ pockets, some are rethinking their automotive choices.

But according to state and local automotive sources, people are still buying new vehicles.

DRC/Barron Ludlum

Small, fuel-efficient automobiles are gaining popularity while the sales of trucks and SUVs slow because of high fuel prices.

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Known for its love of big trucks and sport utility vehicles, Texas continues to see a steady stream of car and truck sales, though sales are completed with a more critical eye toward miles-per-gallon ratings.

“The mix has changed and we are selling more of our smaller cars,” says Mike Eckert, co-owner of Eckert Hyundai. “This [gas price increase] is enough of a wake-up call and people will start evaluating their energy use.”

Despite a slight decline in SUV and truck sales, manufacturers are still placing a lot of incentives on them because families are requesting those types of vehicles, says Bill Wolters, president of the Texas Automobile Dealers Association in Austin.

“They still have the SUV truck available for people that need them for practical reasons,” he said of owners who may own both a car and a truck. “They might just be using their car more than their SUV.”

Though national figures are gloomy, the local market is going well, Wolters says.

Last year, sales statewide were up 7 percent for new cars while national sales were down about 3 percent, he said.

Texas, in fact, is considered the center of the automotive market, Wolters said.

“Texas dealers deliver one out of 12 new vehicles that are sold in the country,” he said.

With the ongoing economic slowdown across the U.S., Texas automotive dealerships have not been forced to close their doors, Wolters said. The state currently has 1,353 dealerships in 317 cities and towns.

“You see gloom and doom everywhere, but they’re still working,” Wolters said. “Car dealerships are still building new facilities.”

Supply and demand

Denton County sits in the heart of one of fastest-growing areas in the country, though the growth is demonstratively less this year than last, according to recent census figures.

With less than a 1 percent growth rate currently, automotive sales are almost even with last year, when gasoline prices were just beginning their upward climb.

According to the Freeman Auto Report, dealerships in Denton County are showing stronger car sales for May compared to last year, while truck sales are only slightly down.

Overall sales are up for the month for the 27 dealerships in the county, with about 400 fewer automobiles sold so far this year, compared to the same period in 2007.

“I think the influence of the car market will continue to be strong,” said Denny Aldridge, general manager at James Wood Autoplex. He says trucks are still on some consumers’ shopping lists.

“Some people need trucks and will continue to buy trucks,” he said.

Popular vehicles

In an unscientific, random survey of area dealerships, all of those who responded cited smaller vehicles gaining popularity among customers.

Rick Wick, general sales manager for Classic Lincoln Mercury Mazda, says he has seen quite a few people at his dealership trading their SUVs for fuel-efficient vehicles.

“For the past month, we have experienced a little bit of loss on the Lincoln side,” he said. “Quarter sales were down 17 percent compared to last year on the Lincoln Mercury lineup.”

On the Mazda side, sales are up 19 percent this year to date, even with the increased gas prices, he said. 

In addition to the Mazda 3 with its EPA fuel rating of 28 miles per gallon, the automaker’s midsize sedan and minivan models are also selling.

Sales for a new arrival, the Lincoln MKS, look good — good enough to make up for some of the decline in Lincoln sales, he said.

“It is very promising for our market,” Wick said.

D’Lon Johnson, general sales manager for Avery Johnson North Texas Nissan, says Sentras, Altimas and Maximas are going strong.

Customer are trading their SUVs for the energy-efficient vehicles that give up to 31 miles to each gallon of gasoline.

The dealership at 5650 S. Stemmons Freeway in Corinth was recently bought by Avery Johnson, former Dallas Mavericks coach, and others.

Johnson says he feels pretty positive about the future.

“We are going to sell 400 cars next month,” he said.

Eckert Hyundai in Denton touted the Accent as one of the models catching customers’ eyes, though the Santa Fe, an SUV, is still attracting some attention on the lot.

At James Wood, top models among recent buyers include the Pontiac G-6, the Chevy Cobalt and the Chevy Malibu.

Ready for the market

Regardless of the increased gasoline prices and the watchful consumers looking to cut consumption, local dealerships have seen similar trends and changes before, Wolters said.

Dealerships know how to adapt to the economic market, he added.

“Bill Utter Ford, for example, has seen every type of circumstance,” Wolters said.

Because of a large and diverse inventory, dealerships are prepared for whatever happens.

“That is one of the challenges they have,” he said. “All they do is take customers to vehicles that keep the market going.”