Small-Car Demand Strongest Since 1970s Fuel Embargo

"We have not seen a situation like this since the OPEC oil embargo in the early 1970s."

That is what Checkered Flag founder and president Ed Snyder says about how surging gas prices have affected the auto business, and in particular, your experience as a car-buyer. Yesterday, I had the opportunity to talk with Ed Snyder, as well as company senior vice president Steve Snyder, about the current situation. When I call that conversation an "opportunity," I mean it. Ed Snyder, who is pictured here, founded Checkered Flag in 1964 and has been continuously at the helm ever since. Steve Snyder has long tenure with the company, too. So when you are looking for insights into the car business, you will not find any sources who are more seasoned and more candid.

Ed Snyder remembers the OPEC oil embargo very well, because it occurred soon after Checkered Flag introduced Honda cars in the Hampton Roads market in the early part of the 1970s. The Honda Civic, which you can see from the photo here was tinier then than it is now and was under import restrictions, became a highly-sought-after vehicle and very hard to get. And "Buicks, Cadillacs, all those big cars that had been so popular...well, you could not sell them at any price," Ed says.

Now, in 2008, the demand by Hampton Roads consumers for smaller cars has started to rival what Ed saw 35 years ago. Checkered Flag offers many such vehicles throughout its dealerships, but Ed and Steve say supplies are getting tight.

"We think that by the end of this month, if you want to buy one of these small vehicles, you will likely need to wait a month for it to come in," says Steve Snyder. "It is going to be a waiting list situation. Eventually, the wait could even be two months. For this reason, if you would like to have the car right now, you should visit or call us now."

Ed says: "We are seeing some very interesting things. For example, some customers are trading in vehicles that are worth more than the car they are buying; it is because they want to scale down for fuel efficiency. And the first question we are hearing now from luxury-car buyers is about gas mileage."   

Do not expect the situation to change soon. The Snyders believe it will take a year for small-car production to catch up with demand.

So, what to do? Well, while the smart fortwo, Honda Civic, and Toyota Prius are synonymous with fuel efficiency in the mind of the public, there are other fuel-friendly vehicles to be had that you may not immediately think of. Over the next few days, the Checkered Blog will be spotlighting what we call the "Unsung Heroes of Fuel Efficiency." These are vehicles in all classes that might not be on your shopping list right now, but we suggest you consider because of their fuel-friendly nature and quality. We will feature our first Unsung Hero tomorrow, so see ya then!