Land-barge SUVs taking back seat to gas sippers

Seven days behind the wheel of a compact, fuel-efficient car clinched it for Catherine Carter.

With regular gas prices at or near record highs, now was the time to buy a gas miser and relegate the massively roomy, yet enormously fuel-gulping Chevrolet Suburban to family trips.

"I've been driving my parents all week and I haven't filled up. It's a huge difference," said Carter, who lives in Mount Pleasant with her husband, Mike, and their three sons, Michael, 11; Nicholas, 9; and Joey, 2.

The vehicle she drove was a Nissan Versa, which, based on EPA figures, ties for ninth in terms of fuel efficiency.The Carters had considered a Toyota Prius. It's the nation's most popular hybrid, a vehicle that combines gas and other power sources such as electric. But they were told it would be October before one of the high-demand cars would be on a dealer's lot in the Charleston area.

Meanwhile, the Versa was available right away. They paid about $15,000 last week for the Nissan, which is much smaller than their sport utility vehicle but still able to comfortably fit their kids in the back seat.

"Oh, it's great," Carter said. "It's really a good car."

Times changed fast. The Carters, who also have a midsize pickup truck, bought the Suburban just two years ago.

"We've just gotten so used to big cars," Carter said.

Similar stories are playing out everywhere. South Carolinians, faced with a struggling economy, wrestle with the surging cost of the fuel they need to get to work and back, pick up the children from school, go to the store, take vacations to the mountains or make trips to the Clemson-Carolina game.

And the Palmetto State has it lucky: at $3.794 a gallon, South Carolina has the lowest average regular gas price in the 50 states and the District of Columbia, based on AAA's daily fuel gauge report Monday. The Charleston area average was $3.821, just off a record high of $3.825 on Saturday. The U.S. average Monday was $3.975.

Not surprisingly, hybrids and other fuel-efficient cars are picking up business. That includes new models as well as older compacts once discarded but making a comeback.

Old cars, new exposure

Fuel-efficient cars from the 1990s, such as the Geo Metro and the Ford Festiva are hot. Mileage for some of these older models, such as the Metro, which gets as much as 45 miles per gallon, rival mileage for hybrids.

By contrast, the midsize SUV market has dropped an average of $1,823, or 10.1 percent, since September, while resale value for the luxury and full-size SUVs has dropped nearly 20 percent, according to Kelley Blue Book's Web site, kbb.com.

The Geo Metro, with all of three cylinders, has gone from a $2,725 Blue Book value in May-August 2006 to $3,050 this year. It cost $9,000 to $10,000 when it was introduced in 1989.

The loaded, expensive sport utilities that fueled the market for years now "are becoming a glut on the market," said Joe Wiesenfelder, senior editor at cars.com.

Easy to be green

Hybrids do tend to cost more than their all-gas counterparts: The 17 new-car models are priced between $21,500 and $104,900. But those prices are offset somewhat because the government offers tax breaks for vehicles that are considered "green."

At least one Charleston area business has caught on: For a limited time, South Carolina Federal Credit Union is offering its members loan rates that are 0.75 percent below market interest rates for cars and trucks that the Environmental Protection Agency deems eligible for energy tax credits.

"Some car shoppers might prefer an environment-friendly vehicle but be discouraged by the initial cost," said John Bryan, senior vice president of lending at the North Charleston-based credit union, the largest local credit union. "Our loan rate discount just might make the earth-conscious choice more convenient for them."

Demand for supply

One problem: Hybrids are hard to find nowadays.

"They are in short supply," said David Yarborough, general manager and vice president of Lexus of Charleston. The carmaker sells three hybrids — the RX400h being the most popular — and all are out of stock for three to four weeks, said Mike Warren, general sales manager.

Two midsize sport utilities, the popular Ford Escape and Mercury Mariner, come in fuel-conscious hybrid models. At Summerville Ford, the models have been selling out in 48 hours, and it will be four to six weeks before the next shipment is in, said Dana Johnson, sales manager.

"Six months ago, we were selling Mustangs, Expeditions," Johnson said. Topping the charts was the nation's best-selling vehicle, the Ford F-150 pickup truck.

Now, the top seller is the Ford Focus, which gets more than 30 miles per gallon and is priced at $16,000, and the Fusion sedan, which costs about $21,000.

Johnson said, however, that many larger vehicles such as the F-150 are still in demand.

Yarborough, of Lexus, sees the hybrid shortage as short-term, with manufacturers boosting supply.

"They will crank it up." he said.

Reach Jim Parker at 937-5542 or jparker@postandcourier.com.