Buyers expect $3-a-gallon gas in current economy

[xcel]

KBB discovers the obvious as consumers gravitate to more fuel efficient automobiles with gas prices rising.

Wayne Gerdes - CleanMPG - 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 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]

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]

Originally Posted by Indigo

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]

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]

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]

Heck, even hypermiling the heck out of my Insight with tanks above 110mpg prices like that will hurt pretty badly.

[R.I.D.E.]

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]

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]

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.]

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