SUVs are back

Denver's snowy winter, falling gas prices make vehicles popular again

Gargi Chakrabarty, Rocky Mountain News

Published January 25, 2007 at midnight

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SUVs are back in vogue.

Credit that to back-to-back snowstorms, arctic blasts that have left streets frozen and cratered, and gas prices at 18-month lows. The rugged, often gas-guzzling vehicles are again popular among car buyers in the metro area.

Local searches for SUVs on some car-buying Web sites have more than doubled in the past two months. And auto dealerships say they have waiting lists for new and even used SUVs as customers make deals for available models at a brisk pace.

"Every time the snow flies, we see Pilots and CRVs selling out," said Yury Ablin, general manager of Mile High Honda, referring to the two popular Honda sport-utility models. "Gas mileage plays a big part in buying decisions, but people are mostly concerned about road conditions and stability of SUVs during inclement weather."

Mile High Honda is sold out of new and used Pilots and CRVs. Auto Mart USA on West Colfax Avenue, a used-car dealer, sold 32 vehicles in December, and 70 percent of them were big SUVs such as Chevy Trailblazers and Explorers.

In metro Denver, sales of GMC SUVs and pickups rose 11.9 percent to 216 in October 2006 compared with 193 the same month a year ago, according to the most recent report from the Colorado Automobile Dealers Association.

That's a big change from the 35 percent drop in GMC sales in August 2006, when the state's average gas price touched a record $3.076 on Aug. 11. Since then gas prices have continued to slide. The statewide average for a gallon of regular unleaded was $2.123 on Wednesday, according to AAA Colorado. And many metro-area stations are below the $2-a-gallon mark.

Cars.com has tracked thousands of Internet searches for -SUVs, new and used, in metro Denver in the past two months. Searches for GMC Yukons and Ford Explorers have doubled during those months, Cars.com spokesman Steve Nolan said.

"During winter, people who live in Denver or other parts that are harder to drive think of heavy -SUVs or truck-based vehicles," Nolan said. "Another factor right now is the incentives that auto companies are offering for their 2006 (SUV) models."

The most telling impact, however, has been on the price of used SUVs.

The average wholesale price of a used SUV is about $17,250 - nearly 10 percent higher than in November 2006, though below the $18,000 price in March 2005, according to the Washington, D.C.- based National Automobile Dealers Association.

"We see a perfect, inverse relationship between the wholesale prices of used SUVs and gasoline," said Paul Taylor, NADA's chief economist. "When gas goes down, it tends to increase the wholesale price of used SUVs."

Randy Bodenhamer is searching for an SUV for his wife, Jolynne.

His requirements: a four-wheel drive with at least 20 miles per gallon gas mileage and extra space in the back for his two dogs.

Bodenhamer test-drove a 2001 Mercedes Benz SUV at Auto Mart on Wednesday. He liked the price, $16,990, but wasn't impressed with the gas mileage of 16 mpg.

Bodenhamer, a retired counselor from Thornton, said he'd test drive some other models, including Ford Explorers, Volvos and Range Rovers.

"I am looking for something with better mileage," Bodenhamer said as he climbed out of the Mercedes Benz. "I wish I could afford a hybrid SUV, but right now those are too expensive."

Rising prices

10% Increase in the average price of a used SUV in the metro area since November, coinciding with about a 10-cent drop in the average price of a gallon of gas during the same period.

5 things to consider before you buy

1. Safety: Especially with all the snow and ice around the metro area this winter, you might want a four- wheel drive or all-wheel drive vehicle. Look for rollover mitigation systems, electronic stability systems and side curtain-type air bags. Crash test info is available from the National Highway Traffic Safety Administration (nhtsa.gov) and the Insurance Institute for Highway Safety (www.iihs.org).

2. Ownership cost (includes fuel economy) and reliability: A more reliable vehicle with lower maintenance and fuel costs can help balance a higher initial price tag. Check reliability studies from J.D. Power and Associates and Consumer Reports.

3. Roominess: How many adults, children and pets will you transport? An SUV that looks large on the outside might not have a lot of inside and vice versa.

4. Where you drive: If you need an off-road vehicle, don't buy something designed for the city.

5. Ask around: Do your neighbors and co-workers like their SUVs?

Most fuel-efficient SUVs (2007)

Compact Mpg (city/hwy)* List price

Ford Escape Hybrid 3 6/31 $26,900-$28,525

Midsize Mpg (city/hwy)* List price

Lexus RX 400h 3 3/28 $44,660-$46,060

Toyota Highlander Hybrid 3 3/28 $33,030-$39,290

Full-size Mpg (city/hwy)* List price

Dodge Durango 1 6/21 $28,300-$37,310

*Epa Estimates Represent The Highest Rating For Each Model. Fuel Economy Will Vary According To A Vehicle'S Engine, Transmission, Drivetrain And ...