Ho, Ho, Huh? High gas prices putting a damper on car sales but not holiday spirit
In one of the least surprising announcements of the season (coming in not too far behind "It's cold" in most of America), the folks over at Kelley Blue Book Marketing Research are saying that high gas prices are causing many new car shoppers to spend less. The reason, "shoppers spend less on self in order to spend more on others," KBB said in a statement. Almost half (44 percent) of "in-market new-vehicle shoppers are looking at cars they normally would not have considered due to the pain at the pump." The winners are crossovers, sedans and hatchbacks. The losers are SUVs. KBB's study found that Americans are also eating out less and buying fewer "non essential retail items" thanks to the more-than-$3-a-gallon prices. KBB conducted the study during the first week of December.
[Source: Kelley Blue Book]
Reader Comments (Page 1 of 1)
ohgreen.com 1:44PM (12/18/2007)
Here's another example of Republicans not understanding economics, and powerful Republicans understanding economics all to well.
Consumers lose money that otherwise would have been disposable income. Our economy is based 70% on consumer spending, gas prices matter to the number of jobs in this country.
But wealthy corporate oil boys like high gas prices, and don't mind making a buck of the back of overall economic health.
A prudent public investment would make sustainable transportation investments that will only spur long term economic growth. But you have to understand economics to vote for someone who will do that.
Join the hypercar discussion with intelligent ecogeeks at: http://wiserearth.org/group/hypercar
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Rick 3:35PM (12/19/2007)
Really? Wow, because just 2-3 months ago official word was that gas prices WERE NOT affecting spending and that consumers were still demanding lost of expensive gas. Now it seems reality is setting in and the numbers are begining to show.
It's about time the affects are felt. That's the only way to change.
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