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

Economy, Energy

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 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?


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