KBB: Shoppers likely to change vehicle choices as gas prices rise
In case you fill up your gas tank so infrequently that you hadn't noticed (lucky you!), fuel prices here in the United States are on their way back up. According to a recent Kelley Blue Book study, 87-percent of new-car shoppers said they thought gas prices would go much higher. Seems like the obvious choice to us, too.Curious what those expectations for rising fuel costs are having on new-car purchasing decisions? KBB's got a statistic on that, too. More than 60 percent of in-market new-car shoppers said that rising gas prices have either caused them to change their minds completely or at least made them think about vehicles they normally wouldn't have considered. For instance, consumers may opt for a four-cylinder or V6 engine instead of a more powerful and furl-thirsty V8.
KBB's data further indicates that $3 gallons of gas may be the new tipping point that will get consumers to alter their spending habits. See more in the official press release after the break.
[Source: KBB]
Photo by Peter Kaminski. Licensed under Creative Commons license 2.0.
PRESS RELEASE:
Kbb.com Market Intelligence Survey Shows Shoppers Likely to Change Vehicle Choices, Spending Habits as Gas Prices Rise
IRVINE, Calif., June 12 -- Kelley Blue Book, www.kbb.com, a leading provider of new car and used car information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers' opinions on gas prices and how they affect their purchase decisions.
When asked in May 2009 what they think will happen with gas prices in the next 30 days, 87 percent of new-car shoppers said they thought gas prices would go much higher, a significant jump from the 66 percent who thought gas prices would increase just a month earlier.
In both April and May, more than 60 percent of in-market new-car shoppers said that rising gas prices have either caused them to change their minds or made them think about vehicles they normally wouldn't have considered. When asked what they would be most likely to compromise in their next new-vehicle purchase in order to save money they might need to spend on fuel, shoppers cited engine size (for example, a four-cylinder versus a V6 or V8) as the top item likely to be sacrificed, followed closely by vehicle size (for example, a mid-size sedan versus a large sedan).
In addition, 73 percent of those who saw gas prices increasing in May said they plan to change their spending habits if gas prices were to go much higher.
"As summer approaches with household budgets still pinched by the weak economy, car buyers are once again becoming very conscious of rising gas prices," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "While we may not see the $5-per-gallon gas experienced in some areas last year, current economic conditions compounded by the pain at the pump may make $3-per-gallon gas a new threshold for car buyers - the point at which they change their mind about what vehicle to buy and how they spend their money."
The April wave of this Kelley Blue Book Market Intelligence study was fielded to 691 in-market new-car shoppers on Kelley Blue Book's kbb.com from April 16-27, 2009. The May wave of the study was fielded to 753 in-market new-car shoppers on Kelley Blue Book's kbb.com from May 15-26, 2009.
Reader Comments (Page 1 of 1)
ronEbear 12:20PM (6/15/2009)
In other news fish need water to live.
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wave54 1:46PM (6/15/2009)
The news networks are already breaking out their stock video of the well-fed soccer mom (Big Butt Bertha) standing next to the Expedition/Suburban/Grand Cherokee complaining about the price of gas.
Of course, she's got the bottle of Evian in her hand that she just paid the equivalent of $10+ a gallon for.
polo 3:20PM (6/15/2009)
The sad thing is articles like this are actually needed to educate some of the idiots (especially on autoblog) who keep chastising the Obama admin for making GM and Chrysler focus on smaller, more efficient cars. That is the ONLY WAY those companies will be viable going forward.
I mean, look at these numbers:
"When asked in May 2009 what they think will happen with gas prices in the next 30 days, 87 percent of new-car shoppers said they thought gas prices would go much higher, a significant jump from the 66 percent who thought gas prices would increase just a month earlier.
In both April and May, more than 60 percent of in-market new-car shoppers said that rising gas prices have either caused them to change their minds or made them think about vehicles they normally wouldn't have considered."
This should be the first hint to ignore those who say people "don't want smaller or more efficient cars".
Serge 6:52PM (6/15/2009)
"In both April and May, more than 60 percent of in-market new-car shoppers said that rising gas prices have either caused them to change their minds or made them think about vehicles they normally wouldn't have considered."
Include me in this statistic. ABG was an excellent resource that helped me in my buying decisions. So, thanks ABG!
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bebop 10:26AM (6/16/2009)
Here's hoping gas prices go back up to $4 and beyond because unless they do supersize cars will almost certainly be back. The average American is so obese that the thought of having to squeeze themselves into smaller cars becomes an issue.
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