Fuel prices driving people into bigger vehicles

MOUNT VERNON — Gwen and Anthony Smith of Cedar Rapids knew the car they wanted to buy when they walked onto the lot at Lynch Ford Chevrolet last week.

Gwen had amassed 250,000 miles on her 2008 Ford Escape. She wanted the same vehicle, just new.

'The main thing we wanted is four-wheel drive,' Anthony Smith said. 'I wouldn't have anything that doesn't have four-wheel drive or all-wheel drive because of the winter months. We drive to Iowa City for work every day.'

Iowans are pretty consistent when it comes to buying vehicles. They like bigger cars, particularly pickups. Domestic brand sales outpace imports, and Chevrolet typically bests Ford for most popular model.

Going with the Ford Escape, the Smiths chose the fourth-best-selling new vehicle in Iowa this year, according to statistics from Waterloo-based Reg-Trak and provided by the Iowa Automobile Dealers Association. The Escape has been in the top 10 for sales since 2009.

'I'm convinced moderate gas prices are letting Iowans purchase what they want,' said Bruce Anderson, the automobile association president.

The data supports that notion.

Gar prices have declined from $3.70 per gallon average to $2.44 in the past 18 months, according to GasBuddy.com.

University of Michigan's Transportation Research Institute studies fuel-economy trends through a group called Sustainable Worldwide Transportation.

The average fuel economy of new vehicles sold in the United States has dropped for the past year, to 25.3 mpg in August, the group reported.

'This decline likely reflects the decreased price of gasoline in August, and the consequent increased sales of light trucks and SUVs,' the project director, Michael Sivak, and Brandon Schoettle, project manager, said when the data was released.

Car sales nationwide are down 10.3 percent compared to this time last year, with small cars showing the largest dip, according to data from Motor Intelligence published by the Wall Street Journal. Light-duty truck sales, which include pickups and SUVs, on the other hand are up 8.6 percent with the biggest gains among cross overs.

Iowans tend to hold true to their brands, Anderson said.

The Chevrolet Silverado has been Iowa's best-selling model, followed at No. 2 by the Ford 150, since at least 2007, which is the first year provided in the report.

The Silverado is on track for its best year since 2007, with 1,042 pickups sold on average per month through June 2015. The F150 is selling 645 on average per month, according to the Reg-Trak data.

Iowans buck the national trend, though — the Ford F series is the nation's top seller. In August, 71,332 Ford F series pickups sold, compared to 54,977 Silverados, according to the Motor Intelligence data.

Sales are up for both vehicles compared to this time last year, while sales for the No. 4 ranked Honda Accord and No. 5 ranked Toyota Camry, are down 20 percent and 15 percent, respectively. In Iowa, the Camry has been among the top 10 brands, but sales fell 220 per month in 2014, to 203 per month this year, according to the Reg-Trak data.

In Iowa, pickups and SUVs are more than 50 percent of the vehicles on the road, Anderson said. On the east and west coast they represent around 15 percent, he said.

'Iowa is a pickup state,' Anderson said.

Chevrolet with 99 and Ford with 92 have the most dealerships in Iowa — or 'roofs,' as Anderson calls it.

This may help explain some of Iowa's preferences in vehicle choices, particularly why domestic vehicles are more popular than import brands in rural areas.

When looking at Washington, Cedar, Benton, Jones and Iowa — the counties surrounding the Corridor's two urban centers — only five import models rank in the top 10. By comparison, six of the top 10 models in Johnson County and five of 10 in Linn County are import brands.

'Most county seat towns have a domestic name plate dealer or two in them. Not so much with the international name plate dealers,' Anderson said. 'If you are buying Chevy or Ford, you probably have an in-town dealer. If are buying international, you are heading to the city to get your service.'

Back at the Mount Vernon dealership is Don Schmidt, the sales manager. The dealership sells two rival brands — Ford and Chevrolet.

He agreed lower gas prices are helping larger vehicle and truck sales, but when asked how he compared the two products and why Chevrolet is more popular in Iowa, he pleaded the Fifth.

'I've got to stay neutral on those, but I will say they are our two best sellers,' he said.

Anthony Smith said he is thinking about to trading in his vehicle for an F150, saying it offers a better ride than the Silverado. But as the couple purchased one vehicle last week, he said he will have to wait his turn.

'The next one I get will be an F150, but it will be awhile,' he said.