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Practically Speaking

Kyle and her husband moved to Brookfield in 1986. She became active in local politics and started blogging in 2004. Her focus is primarily on local issues but often includes state and national topics, too. Kyle looks at things from the taxpayers’ perspective in a creative, yet down to earth way, addressing them from a practical point of view.

Gas prices fall and so does interest in small cars

By Kyle Prast
Friday, Aug 15 2008, 12:47 AM

According to Wednesday's USA TODAY Money section, the slight fall in gas prices has already influenced the type of car people are looking at.

It seems that now that the heat is off, rising gas prices wise, so is the interest in small cars.

The article, Hot ;small-car sales simmer down - Falling gas prices pull reins on stampeding buyers, stated that, "Car shoppers who panicked in June and July about gas prices are losing intrest in small cars and hybrids as fuel prices have declined."

This drop in interest was based on Edmunds.com users searching for certain types of cars--compacts and hybrids. A chart showed that although gas prices rose from $3.33/gal in April,  to a peak of about $4.10 in July, and have fallen to $3.81 now, the percentage of compact and hybrid searches is now just about where they were in April.

"In June, 31.4% of recent new car buyers surveyed said the purchase was motivated by a desire for better gas mileage, Acxiom says. That is up from 21.1% in February, but still less than a third of buyers. there is 'not this huge flood to one segmennt in the auto industry," says Tim Longnecer of Axiom's automotive practice. 'There's still going to be this hughe desire for utility.'" 

The article concluded with a quote from Jeremy Anwyl of Edmunds "At the end of the day, people need space."

We too toyed with the idea of trading in my PT Cruiser, which does not get great gas mileage, but concluded the cost to upgrade to a better gas mileage model was not worth it. We figured we could purchase a lot of gas, at a higher price, for the difference in sticker cost for that more efficient model.

The other influencing factor for us, just as Amwyl stated, was size. We needed a vehicle at least PT's size to use for a vacation car, so we did nothing. (Plus I still have 2 more years of warranty left.)

How about you?

Links: 

counter hit xanga

Brookfield7, Fairly Conservative, Betterbrookfield, Mark Levin,   Vicki Mckenna

Comments

Santa's Elf   

It's 1973 all over again. By January we'll be back sucking record amounts of eastern, Canadian and South American oil, and we'll be bleeding money all over the place.

And it's only a matter of months before every American family will require a double bottom eighteen wheeler to meet its transportation needs.

What this country needs most right now is a $2 a gallon tax on gasoline and diesel fuel!

Kyle's reply: I agree with your first comment. People have short memories. I think prices will continue to rise because of increased demand. It is a shame we can't keep more energy dollars in the US. Can't say I agree with the rest.

August 15, 2008 11:08 AM

My Two Cents   

America used to be about freedom of choice.  If you are comfortable driving your loved ones around in a bitty little car next to those 18-wheelers, go for it.  If you need room to conduct your business deliveries or you want a fighting chance with your family's lives on the freeway, you can choose a bigger vehicle. Cars are getting so little that you often need two of them to get your group where they're going.  I have the right to choose.  I don't need government making decisions for me.

August 16, 2008 10:07 AM

Santa's Elf   

"I have the right to choose. I don't need government making decisions for me."

Ah, the yuppie anthem is heard once again.

If that were true, and it most certainly is not, you could drive while stone drunk, in a car without brakes, at what ever speed you chose.

Kyle's reply: "Life, liberty, and the pursuit of happiness," must have come from the nation's oldest yuppies?

I think Two Cents was referring to freedom to choose within the laws of the land but that the government should not be legislating what kind of car, or light bulb for that matter, that we must use. 

I do know of people who must take both their cars to go on a camping trip. That makes no sense whatsoever!  

August 17, 2008 10:29 AM

Tom Gehl   

I think the events and energy prices of the last year have left a permanent mark on the psychie of the American energy consumer.  If individuals can afford large vehicles and the energy that powers them, more power to them.  But in terms of the general population it comes down to the issue of opportunity cost.  By spending "X" on gasoline and large vehicles, what OTHER necessity or opportunity does one forego?  That is the dynamic that I think has and will permanently change behavior.

August 18, 2008 3:28 PM

Santa's Elf   

"I think the events and energy prices of the last year have left a permanent mark on the psychie of the American energy consumer."

That would be nice, Tom, but it probably won't happen. The oil 'shortage' of 1973 had people waiting in lines for several hours just to get 10 gallons of gas. The media was full of articles about oil, alternate energy, etc. And there was serious government talk of rationing gas - 10 gallons per vehicle per week. (They were planning on issuing gallon gas coupons for every vehicle, and allowing a secondary coupon market between folks who did not use 10 gallons a week and those who wanted more.)

I remember driving to work mornings on 894-94. I had a small ford four-banger that got about 25MPG. Almost all of the 'by gully I got my rights to burn whatever I want' luxury car owners were neatly aligned in the right lane smartly doing 50 in a 55, while I along with a few VW Bug owners went wild in the left and center lanes.

But as soon as the oil supply was restored, so were all the old habits. I'll assure you that - short of rationing - the only way to influence American drivers is to tax them into more efficacious thought. We really do need to think less about I, I and me, me; and concentrate on us, us, and what we are doing to the future of our country.

And some folks clearly need help to change their thinking!

Ya I know, Kyle! I'll start my own blog tomorrow!

Kyle's reply: Hey Santa's Elf, I think I have encouraged you to blog for some time--and I mean that kindly.

I too think people have very short memories. (If they had better memories, they would not overspend on their credit cards because they would remember they don't have the funds to pay the bill!) Now that prices have gone down a little, they aren't in quite such a panic to get a better mpg car. The frugal types though will make mpg a higher priority when it comes time for the next car purchase.

Can't agree with the taxing of gas to reduce use; we are already taxed way too much. I think an additional $2/gal tax would really hurt the retirees and lower income / middle income people and cripple our already struggling economy. People who use more gasoline already feel the pain at the pump more and pay more in total taxes just by virtue of their increased gas use.

August 18, 2008 7:19 PM

My Two Cents   

"...and concentrate on us, us, and what we are doing to the future of our country."  

Obviously Elf is voting for a Socialist future for our country. I take responsibility for my life. I don't need Big Brother to bail me out, choose my car or tax me to my grave.

August 19, 2008 8:06 AM

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