No fluke: new survey finds $4 gas is the tipping point
Last year, the reality of $4 gallons of gasoline (and, of course, economic uncertainly), caused a lot of changes in the auto industy in the U.S., from a drop in vehicle miles traveled to a decrease in big vehicle sales. Looks like that $4 level is the tipping point for any future changes in driver behavior as well, according to a new survey put out by Cars.com.
The survey found that if gas were to shoot to over $4 a gallon again, 40 percent of car shoppers would "consider purchasing a new fuel-efficient car right away." About the same amount, 41 percent, said that $4 gas would make them choose a "more efficient car the next time they were ready to buy a car." Even at $3.75, 29 percent of car shoppers thought buying a more efficient car "right away" was the right move. Takeaway point: when gas prices go up, people will want to have greener cars. The question is what kinds of vehicles will be available then the inevitable happens.
[Source: Cars.com]
Reader Comments (Page 1 of 1)
locoyocal 5:28PM (6/29/2009)
No kidding. Jetta TDI can barely sell for 20k.
Fit hybrids next year for $15k.
All this with Guzzler trade in credit of $4.5k coming online soon.
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mike!!ekiM 5:50PM (6/29/2009)
If 4 Dollar gas comes back to the US, you Won't Be Able to get a Prius, or any other hybrid. Nows, the time to buy your hybrid. Or, at least drop an engine size in your next vehicle: From V8 to V6, or V6 to V4, etc...
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locoyocal 6:31PM (6/29/2009)
Mike. Gas is $4 in many parts of the world. Plenty of Prius's and Hybrids to go around.
Anyone that can afford $20k or more should be saving for an Electric Vehicle in three years.
polo 8:50PM (6/29/2009)
"Mike. Gas is $4 in many parts of the world. Plenty of Prius's and Hybrids to go around."
Yeah, parts of the world where scooters and rail service are the top modes of transportation.
I guess you were in a coma back in '08, when gas was above $4 and their were 6month waiting lists for Pruis's and anything else that was small and fuel efficient?
Snoopy 12:34AM (6/30/2009)
Sorry loco,
polo's right. Hybrids suddenly become "unavailable" and, if last year was any indication, the price of used hybrids goes up, possibly even higher than that of new models.
locoyocal 11:07AM (6/30/2009)
polo,
People in 08 didn't buy the Prius because they were economical. They bought it because it was the trend.
rg 6:50PM (6/29/2009)
Since my cars are paid off, it's a far cheaper option to just put up with higher gas prices than to buy another car. Even a really poor mileage vehicle would take many years to top $20K worth in gas and I have to drive over 100 miles a day. Luckily I average about 40 mpg. Before anyone criticizes me for my drive, if you could see where I work, you wouldn't want to live near there either. If you could see where I live, you'd never find my job anywhere nearby. My wife works equally as far in the opposite direction. No, changing jobs is not an option and neither is moving. At least not until the economy improves and jobs are easier to come by. Neither moving or switching jobs is cost effective compared to keeping things as they are. Gas prices hurt, pure and simple. Yes I do work for big bad oil btw! It doesn't mean I want high gas prices.
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polo 8:45PM (6/29/2009)
"Even a really poor mileage vehicle would take many years to top $20K worth in gas and I have to drive over 100 miles a day."
Is 6 years "many years" because thats how long it would take you' to top $20K. Someone who's mileage got the current fleet average would hit that target in around 3. A smarter person would junk that car and use the savings to buy or lease a much more fuel efficient car. There really is no logical argument for saying its a good move NOT to get a more efficient car when you're doing high mileage. Especially not when we're talking $4 gas.
watcher 10:09PM (6/30/2009)
I agree with Polo completely. working for big oil means you're being bought ff by them to 'stay the course' like bush.
Throwback 8:35AM (6/30/2009)
rg, no reason to justify where you live or work. America is still a free country, despite what you may have heard.
Dave - Phoenix 1:22AM (6/30/2009)
This survey only serves to reinforce the need for a gasoline tax increase.
It's no surprise why Hybrids top the sales charts in Europe and Japan. The higher gas prices....Why? Because those countries decide to do something about it.
The U.S. continues to be the only country unwilling to do something about the problem with foreign oil dependency.
For those afraid of the higher cost I say this.....
"There is one cost that we simply cannot afford.....The cost of doing nothing."
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Throwback 8:37AM (6/30/2009)
What hybrids top the sales charts in Europe? Last I looked diesel Golfs, Focus and Astra's sit atop the sales charts.
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James 8:40AM (6/30/2009)
I believe a reasonably large (phased in, with associated income tax decreases) gas tax or price floor is perhaps one of the most important tools to accelerate our transition to a sustainable transportation system. Unfortunately it is wildly unpopular. It would rouse the full power of U.S. innovation to address transportation efficiency by providing a stable and desirable investing environment. We need to account for the cost of all resources used in economic transactions (e.g., value of clean air, value of resources that can't be replaced): http://bit.ly/externalities. Perhaps if an understanding of externalities in market systems found it's way into public knowledge, support for a fuel tax would build. Dave, I agree; the cost of maintaining the status quo is much higher than the cost of a fuel tax. Most people reading autobloggreen probably agree. What can we do to persuade others who don't agree?
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Throwback 11:06AM (6/30/2009)
James, when people are struggling to make ends meet today, the idea that paying more for gas will help them tomorrow is a tough sell. Do you really think a gas tax hike would be off-set with an income tax reduction? They way we are spending money these days, any additional gas tax revenue would have to be used to pay the interest on our debt.
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JGH 11:20AM (6/30/2009)
A blinding flash of the obvious, seeing as we witnessed exactly the result last summer.
Actual pain at the pump inflicts action - talking or thinking about it does not, as evidenced by the return to less efficient vehicles as gas prices slumped, despite the looming return to expensive gas in the future. People act with their wallets, not their mouths.
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