Rising Gas Prices: Fuel Economy and Your Next Car Purchase?
Wednesday, January 7, 2009 2:31The Associated Press reported that oil prices fell Tuesday as fresh signs of a deepening U.S. recession trumped tensions in the Middle East and worries over natural gas shortages in Europe. Light, sweet crude for February delivery fell 23 cents, to $48.58 a barrel, in trading on the New York Mercantile Exchange.
The five-month slide in gasoline prices has come to an abrupt halt, with gasoline rising by several cents in recent days amid indicators that the national average could jump to $2 a gallon or higher this spring.
So we’re facing rising gas prices — how does that impact new car purchases, specifically hybrid and alternative fuel vehicles?
Automotive analysts expect consumers, who are still wary over the shaky state of the economy, to buy between 10 million and 12.4 million new cars and trucks in 2009. That’s down substantially from the 16.7 million in annual sales the industry has averaged over the past decade. And it’s even lower than the dismal 13 million or so in sales expected for 2008.
So the question is, at what point does fuel economy and better gas mileage become an issue again? A lot of consumers have simply stopped purchasing new cars due to the poor economy. Once car sales begin to pick up, though, it will be a new market out there. Consumers will want cars which get better gas mileage and more miles to the gallon. Next years answer may come from Ford:
The 2010 Ford Fusion Hybrid, and its twin, the 2010 Mercury Milan Hybrid, are mid-to-full-size sedans that seat five in surprising comfort and offer a full-size trunk measuring around 12 cubic feet. They measure 190.6 inches and weigh a goodly 3,720 pounds. The gas-electric output is 191 horsepower and 0-60 mph acceleration is under 9 seconds.
With the cost of gas increasing to $2 in the next few months, more and more consumers will take another look at hybrids and alternative fuel vehicles.
Alan says:
January 7th, 2009 at 8:39 am
Your probably aware that in the UK not only do we get taxed more for high emission vehicles, we pay more road tax dependent on co2 emmisions as well. Add to that the goverment takes just about 49% tax in every £1.00 of fuel you buy, its a real “cash cow” for income for them. Driving has become a very very expensive activity here. When the new fuel efficient vehicles become the norm, we can expect fuel duty to increase yet again. Hydrids have been around for a while but until the petrol stations actually make it more available
texacogascards says:
January 11th, 2009 at 11:57 pm
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cheap combat boots says:
January 12th, 2009 at 9:27 am
Okay so everyone has problematic issues with gas and having cars on gas. Why do you think they are not allowing those kind of engines that run on different substances other the gas? Why do you think they buy all the inventions in this field and acquire the patents of these inventions. They are simply not interested in people using some other alternative fuel. Money and wealth is all that matter for the people that are controlling the gas prices on the market.
Billy
Brat says:
January 12th, 2009 at 10:41 pm
As long as the cars are stylish that should be an even bigger incentive for the consumers to switch over to hybridgs or more mpg efficient cars. Thats why out of all the “affordable” hybrids, I think the Ford fusion presents one of the best overall looking body style to it with an affordable cost.
Brat’s last blog post..Smoked Beer Brats
Sam says:
January 15th, 2009 at 10:42 pm
Why is it that most hybrid cars are ugly? Is it intentional?
And to your question – “So the question is, at what point does fuel economy and better gas mileage become an issue again?” – It becomes an issue as soon as the global economy starts to recover, and demand for oil spikes. Back to $5.00/gallon and the pursuit of hybrids.
Sam’s last blog post..BYD F3DM – First Electric Car To Market?
Ben | Ventrilo Servers says:
January 16th, 2009 at 2:04 pm
Yes I agree with you, no one can guarantee the stability of fuel prices and the best alternative would be the new Electric cars but the initial cost of EVs is also high, so there is another option that is converting your normal car to a electric car using conversion kits.
Tina | Foreclosure Listings says:
January 18th, 2009 at 9:23 pm
I had done some research few months ago about the fuel economy and the hybrid car technology. There are really big difference on gas consumptions on this hybrid cars. They’re environment friendly and of course, faster!
Alex | Secure VPN says:
January 20th, 2009 at 9:27 am
Wow, I am still such jealous because of US car prices. With such ones gas questions should not even arise:)
Dean Graziosi says:
January 23rd, 2009 at 12:57 pm
My next car will either be a full electric car or a hybrid. Its so much better on the environment and my pocket book. Thats for the great post.
Catherine | Natures Sunshine Store says:
January 26th, 2009 at 9:14 am
I am glad i don’t own a car. But yes, the economic crisis is causing a lot of troubles to people owning cars. Now more and more people are finding ways to decrease car usage.
brett says:
January 27th, 2009 at 9:17 am
I am getting one of 2010 Mercury Milan Hybrid
familytram says:
January 27th, 2009 at 9:15 pm
The economic crisis sure is affecting the prices of fuel in the market, now we can see that gas prices are increasing once again. That is exactly the reason why I am contemplating on selling my good old SUV and trade it with something more fuel efficient.
familytram’s last blog post..2010 Mazda 3 could be Your Family Car
Penny says:
February 9th, 2009 at 8:07 pm
My next purchase will definitely be affected after what I had to regularly pay for gas a few months ago.
LED Tail says:
March 11th, 2009 at 9:18 am
Last summer in Europe the gas price was very expensive! It reached almost 1,5 euros per liter. I want to buy a hybrid car because with this high prices of gas I have to pay half of my money on gas
Apex Professionals LLC says:
March 20th, 2009 at 11:58 pm
Gas prices not withstanding, people should honestly consider what the ROI is on hybrid cars. Generally speaking the money you save with improved gas milage is severely counteracted by the higher cost of a hybrid vs standard fuel car. Further the notion that hybrid cars are somehow better for the environment fails to take into consideration the damage the process to mine the elements used in the batteries has on the environment, or that the way these elements are shipped to the various auto manufacturers burns more crude oil per hybrid built than a non hybrid would use over a 3 year period. Food for though.
Apex Professionals LLC’s last blog post..Apex Professionals LLC: Why get out of your timeshare?
suv accessories says:
April 20th, 2009 at 7:54 pm
This is a really great article. My next car purchase would be a hybrid, that is for sure I’m thinking the 2010 Ford Fusion Hybrid.
ford diesel tuning says:
May 20th, 2009 at 9:13 am
Like the article, i think hybrid cars will thrive short-term but will soon be outshone by hydrogen powered cars. The technology for that is virtually there at a commercial level, fuel costs would be similar to current costs, economy would be similar, but the emissions are water so a 0 on the carbon footprint.
Anthony from Power Hour says:
June 1st, 2009 at 7:16 pm
I am still waiting for the price of hybrids to go down a bit more. I don’t think the trade-off is good enough yet.
Louisville Transmission says:
June 3rd, 2009 at 3:31 pm
Gasoline prices are going up again for the summer season. When gas prices hit $4 per gallon the summer of 2008 I think many people have decided to make a permanent switch to downsizing and going for fuel economy. If gas prices rise to $4 there will be many people in large vehicles kicking themselves that they ignored getting a good price on many cars that can be found now.