Americans might be starting to have a change of mind about buying smaller cars as gas and oil prices decline. Car shoppers who panicked in June and July about gas prices are losing interest in small compact cars as fuel prices have declined. Americans are starting to use more gasoline as prices continue to fall, and oil prices have dropped to $112.00 per barrel today (3 month low). Americans are folks who are addicted to their cars and if gasoline prices continue to fall, will the SUV’s or SUV’s hybrid outsell the smaller compact cars?
To Drive or Not to Drive?
Picture Credit: J.R. Trauben
Will Americans revert to their old driving habits and want to buy SUV’s again? Trends in automobile purchasing may be changing.
From USA Today:
As gas prices topped $4 a gallon for about seven weeks this summer, truck and SUV sales plummeted, and small-car sales soared. But Edmunds.com, which attracts about 50% of people using the Internet to research their next car purchase, says research interest in compact crossover SUVs now is on the rise.
“In May, June and July, people were just stunned” by $4 gas, says Jeremy Anwyl, CEO of Edmunds.com. Now, “It’s kind of a return to rationality, where the singular fixation on fuel economy is gone. As people think things through clearly and a little more calmly, they’ll make different decisions.”
But the future of compact and smaller cars may not be as bright as some predict. In addition to Edmunds.com’s report, a study by consulting group Acxiom found most buyers won’t look to small cars for their next purchase but may downsize in the class of vehicle they drive. Owners of big SUVs, for instance, would more likely buy a smaller SUV or crossover, not skip to a small car just to save gas.
One important fact to remember: The drop in the price of oil and gasoline has been affected by market conditions not because of our do-nothing government, who is on summer vacation.
Solutions that solve nothing, will they continue in the oil debate, or is America really serious about reducing the use of oil?
Read the rest of the story: USA Today