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What happens when gas costs $4? There's a stampede for small cars [View All]

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depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Sat May-31-08 04:26 AM
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What happens when gas costs $4? There's a stampede for small cars
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Ford Motor Co.'s $14,000 compact has been called the Freaky Focus. Complaints about the Focus line have ranged from a lackluster interior to a hollow, bumpy ride. One reviewer dubbed the cushiest model the Ugly Betty of little cars.

For years, the fuel-efficient little auto has taken a backseat to flashier, heftier rivals.

But as gas prices have charged upward -- crossing the record milestone of $4 a gallon for regular gasoline in Oregon on Friday -- Focuses and other shrimpy cars are the hottest rides around town.

Compacts sail off new-car lots. They pull in higher-than-usual prices on used-car lots. And as rental-car companies find it harder to keep compacts at the ready and track down additions to their fleets, some travelers are playing a new game: reservation roulette.

"They reserve something at a cheap rate, but when they get here, we have to offer them an Impala or an SUV. I have to ask, 'Can you take a van?' and they're very upset," said Tracy Chambless, manager of the Avis car rental office in downtown Portland. "I just cannot get small cars. I've just got one Ford Focus out there right now.

"I can't stop my brain from thinking, 'Ok, what to do, what to do?' "

In April, year-over-year sales of large pickups dropped 17 percent and sport utility vehicle sales fell 29 percent, according to Autodata Corp. Sales of subcompacts rose 33 percent.

Though SUV sales have been slipping for three years, industry analysts say a weak economy and fuel prices that jumped 10 percent between March and April alone have spurred the nation's gravitation to cheaper, more fuel-efficient wheels. Oregon passed the $4-a-gallon mark Friday, and the national average stood at $3.96.

For local auto magnate Ron Tonkin, the shift has been stark and sudden.

Experiencing a rush on small cars, Tonkin said, it's hard enough for him to get his hands on the compacts for retail customers without worrying about sales to rental-car agencies.

More: http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/121220433076690.xml&coll=7

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