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View Full Version : Buyers expect $3-a-gallon gas in current economy


xcel
06-13-2009, 09:13 AM
http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg KBB discovers the obvious as consumers gravitate to more fuel efficient automobiles with gas prices rising. (cleanmpg.com/forums/showthread.php?p=214599)

http://www.cleanmpg.com/photos/data/501/2010_Prius_lower_price.jpgWayne Gerdes - CleanMPG (cleanmpg.com) - June 13, 2009

2010 Toyota Prius-III - $22,000 to start and 50 mpgUS combined on the 08 EPA. All but a guaranteed sales success as fuel prices contiue to rise.

Irvine, CA. -- Kelley Blue Book (kbb.com) revealed the results of their latest Market Intelligence survey of in-the-market new-car shoppers, detailing consumers' opinions on gas prices and how they will affect their upcoming new car 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-the-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 Market Intelligence study was fielded to 691 in-the-market new-car shoppers on KBB. The May study consisted of 753 in-the-market new-car shoppers.

Indigo
06-13-2009, 10:08 AM
Anyone who isn't aiming for at least 30 MPH out of their primary driving vehicle is an idiot. As much as I love my Scion xD, my next car will have to get at least 40 MPG.

SentraSE-R
06-13-2009, 11:14 AM
Anyone who isn't aiming for at least 30 MPH out of their primary driving vehicle is an idiot. As much as I love my Scion xD, my next car will have to get at least 40 MPG.
Yeah, any car that can't go 30 mph is a real slug ;)

JusBringIt
06-13-2009, 11:16 AM
My replacement vehicle will be rated by the epa @ least what my current car can get on a good day, and that's easily 40 city, 55hwy.

xcel
06-13-2009, 12:09 PM
Hi Guys:

___A note of warning...

___Those of us pulling 40 and 50 mpg are paying more to travel the same distance as those receiving 15 mpg in their Ford F-150's six plus years ago. What if gas goes to $6.00 per. How about $8.00? How about more? You would be in a world of hurt if you planned on a 30 mpg car carrying you through at those prices... I would hope everyone would consider a vehicle that is both rated at 45 + and capable of double that as that is what we need, not necessarily what most want.

___Once you drive a Prius-III, it should alleviate any issues of size and performance wants vs. needs and 100% of the time you will be driving a vehicle capable of 50 mpgUS with ease...

___Remember, 45 mpg gets us off foreign oil. Anything less is not a solution to that problem in today’s current supply/demand environment.

___Good Luck

___Wayne

Right Lane Cruiser
06-13-2009, 01:03 PM
Heck, even hypermiling the heck out of my Insight with tanks above 110mpg prices like that will hurt pretty badly.

R.I.D.E.
06-13-2009, 01:44 PM
At $5 per gallon the difference in 100k miles in a 10 MPG car versus a 50 mpg car is $40,000 in fuel alone. For every extra 10 mpg (above 10 mpg) just subtract $10,000 off the difference.

Even at 30 mpg the difference is still $20,000 versus the 50 mpg car.

regards
gary

ALS
06-13-2009, 02:09 PM
It's like buying a computer back in the 90's. Just when you thought you had the biggest baddest one on the market, it was so yesterday with in six months.

30 mpg is a joke. Are we talking city?, highway? or combined?, because both my cars will pull 29+ highway. And there is no way I want to replace my DD this summer with anything that gets below 40 mpg combined.

Bad things are coming and the average American driver is about to see armageddon at the gas pump. It isn't going to be the cost of oil that is going to be the vacuum cleaner sucking their wallets dry, it's going to be fuel taxes imposed by the Government to pay for all the spending.

voodoo22
06-13-2009, 02:29 PM
People just don't care and won't care until they really can't afford to pay for gas.

One guy at work drives a full sized GMC truck to work. I showed him how he could lease a smaller car and the savings in gas would cover his lease, insurance and still put money in his pocket. He still drives the truck.

I wish gas would get more expensive. It force a lot of good changes:

slower drivers
maybe a 4 day work week
more people working from home
better mass transit

A lot of bad things would come along with high prices, but it seems the majority have to have the choices to change made for them through high gas prices.

R.I.D.E.
06-13-2009, 02:47 PM
I am a firm believer is consumption taxes. Watch an older couple on a fixed income who have to choose between essential medication and the loss of their home.

regards
gary

SentraSE-R
06-13-2009, 03:28 PM
$10/gallon gas would be great in weaning us off of Single Occupant Vehicles. The whole culture of SOVs needs to change, and buying 50 mpg vehicles won't do that. What we all need to be doing is carpool, public transportation, and zero fuel alternatives.

In my 34 year working career, I didn't drive a car alone more than a year or two. Admittedly, I did ride motorcycles on and off for 20 of those years. But I carpooled a lot, vanpooled, took public transportation, ferries, BART, bicycled, and walked a lot more. In contrast, 70% of bay area commuters are in SOVs.

Earthling
06-13-2009, 04:33 PM
To me, 30 mpg highway is the new gas hog. The minimum for me would be 40 mpg highway.

My fleet averages more than that now. ('99 Civic, BMW motorcycle, '07 Prius).

Harry

fuzzy
06-13-2009, 05:59 PM
At $5 per gallon the difference in 100k miles in a 10 MPG car versus a 50 mpg car is $40,000 in fuel alone. For every extra 10 mpg (above 10 mpg) just subtract $10,000 off the difference.

Even at 30 mpg the difference is still $20,000 versus the 50 mpg car. ...

You may want to recheck your math. At that price and distance, the difference between 30mpg and 50mpg is $6667.

This is one more instance where gallons per 100 miles would make more intuitive sense to most people, than our current MPG rating system.

corollasport09
06-13-2009, 08:18 PM
I am currently getting an average of 34 MPG of a corolla, so my next car would be at least 50 MPG

GardenWeasel
06-13-2009, 08:22 PM
Part of my trip today was 501.8 miles on 9.158 gallon of gas... I love my Civic Hybrid!!:Banane44::Banane44::Banane10:

R.I.D.E.
06-13-2009, 08:41 PM
You may want to recheck your math. At that price and distance, the difference between 30mpg and 50mpg is $6667.

This is one more instance where gallons per 100 miles would make more intuitive sense to most people, than our current MPG rating system.

Yep you are right.
regards
gary

Ophbalance
06-13-2009, 09:40 PM
Hi Guys:
___Those of us pulling 40 and 50 mpg are paying more to travel the same distance as those receiving 15 mpg in their Ford F-150's six plus years ago. What if gas goes to $6.00 per. How about $8.00? How about more? You would be in a world of hurt if you planned on a 30 mpg car carrying you through at those prices... I would hope everyone would consider a vehicle that is both rated at 45 + and capable of double that as that is what we need, not necessarily what most want.
___Good Luck

___Wayne

I'd love to consider a hybrid (likely one of the Honda's with Lean Burn), but that's just not in the budget :(. The Elantra is starting down that rocky path that every car that I've ever owned has hit on its tenth year of existence (the exhaust has got a leak somewhere after the cat... grr), things are going to just start wearing out before too long. I'd love to start looking at a replacement, but that's not in the cards until after my current contract gets picked up at the end of this year (hopefully??) and there's no drop in pay. At best, I'm thinking I've got a used Fit or Yaris in my future as I cannot see spending more than 10-12k to replace my current car. And a I can't really see getting a high mileage hybrid to replacement my current car... that's just never really worked for me. I invariably will end up sinking more into the car in maintenance than buying new would have netted me.

So, although it'd be great to get a hybrid, I can't help but wonder if a hybrid isn't still out of reach of a typical families financial abilities?

GardenWeasel
06-13-2009, 09:55 PM
Sounds like you are a candidate for a Honda Insight in a couple years - when the first ones come off lease..

fuzzy
06-13-2009, 09:59 PM
___Once you drive a Prius-III, it should alleviate any issues of size and performance wants vs. needs and 100% of the time you will be driving a vehicle capable of 50 mpgUS with ease...


Mine arrived this afternoon, and it does seem big so far. I'm still adjusting to it. Forgot to put it in ECO until more than half way through the second 'trip'. Starting with a very low SOC, no ScanGauge, and me paying more attention to the traffic and the different feel and not realizing how quickly it got up to speed (it rolls smoother and quieter than my old cars), I managed 'only' 58.0 mpg for 60-some miles for the day. No real hypermiling yet, but this clearly crushes the Subaru for non-winter travel.

So Wayne, when does the next batch of ScanGauges get shipped out?

-- Dean

ALS
06-14-2009, 08:47 AM
Part of my trip today was 501.8 miles on 9.158 gallon of gas... I love my Civic Hybrid!!:Banane44::Banane44::Banane10:

And I'm happy at 29.5 mpg highway with my 960. :rolleyes:

I can't wait to score a Hybrid in July or August. This 21-22 mpg around town in my 87 DD wagon is killing me. 369,500 miles and it is getting retired because it is starting to nickel and dime me.

Blackbelt
06-15-2009, 09:24 AM
n both April and May, more than 60 percent of in-the-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 is a big part of why we are in the position we are in. Peoples memories being SO short that they are now just "changing their minds". They should have changed them YEARS AGO.
Like my brother. I told him that a weeks worth of gas in his hemi durango would last a month in my smart. He said "yea, but your smart is slow", to which i retorted "Are you really in THAT much of a hurry to get to work?" LOL:D

WoodyWoodchuck
06-15-2009, 12:49 PM
The price of gasoline was a big factor in me deciding to buy the Yaris. I would have loved to get a Prius or any other vehicle that the EPA set at over 50 mpg but I could not afford it. Even if Gasoline was over $10.00 a gallon it was the monthly payment that limited my choices. Sure I would save money with the higher mpg vehicle and that would more than make up the difference but it all comes back to what I could afford. I’m not a state or federal government that can just raise taxes to balance my budget, I have to balance with what I currently bring in.

I think there were a lot of folks in my position last year and even more now due to the economy. We can only afford what we can afford no matter what we would like to buy and how much it would save us in the long run.

AlphabetBackward
06-15-2009, 01:00 PM
It's already 2.99 where I gas up and I've already seen prices as high 3.10 in other parts.

Taliesin
06-15-2009, 01:02 PM
___Those of us pulling 40 and 50 mpg are paying more to travel the same distance as those receiving 15 mpg in their Ford F-150's six plus years ago. What if gas goes to $6.00 per. How about $8.00? How about more? You would be in a world of hurt if you planned on a 30 mpg car carrying you through at those prices... I would hope everyone would consider a vehicle that is both rated at 45 + and capable of double that as that is what we need, not necessarily what most want...

Some scary math ahead.

I used to drive a '74 Chrysler Newport that got 8 mpg. The price of gas at the time was $0.80, so I was spending $0.10 a mile.

Now I drive a Ranger that is EPA rated at 23 mpg combined and would be almost $0.11 a mile.

Luckily I hypermile and get a minimum of 35 mpg out of that Ranger ($0.07 a mile).

I don't even want to think about it compared to my first car:

'75 Malibu Classic. It got 26 mpg and the price of gas was $0.76. Just under $0.03 a mile, and I don't know of anyone consistently getting $0.03 a mile right now! (though some here are close).

99LeCouch
06-15-2009, 01:28 PM
Glad I can get 35-36 highway without much effort in my couch. Around town kills me, though. All dense urban jungle.

Gas prices figured into my fiancee's decision to get the Fit. I'm trying to show her by example how to break 40 mpg with it.



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