Rising Gas Prices: Fuel Economy and Your Next Car Purchase?

Wednesday, January 7, 2009 2:31

The 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.

2010 Ford Fusion HybridSo 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.

Both comments and pings are currently closed.

30 Responses to “Rising Gas Prices: Fuel Economy and Your Next Car Purchase?”

  1. 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

  2. texacogascards says:

    January 11th, 2009 at 11:57 pm

    I get a $25 Texaco Gas Card every month that I spend $100 or more on any Texaco fuel products. This rewards program is available to all members of the Texaco Gas Cards Rewards Program. The loyalty program only costs $49 to join and you get a $500 Gas Certificate with membership. I use it with a 5% cash back rewards credit card. So my first $100 of gas each month costs me only $70. That is a 30% discount on gas! Far and away the best discount program I have ever seen. Check it out for yourself at http://www.texacogascards.com

  3. 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.


  4. 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.

  5. 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!

  6. 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:)

  7. 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.

  8. 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.

  9. 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

  10. 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.

  11. 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

  12. 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.

  13. 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.

  14. Anthony @ 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.

  15. 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.

  16. Greg P. says:

    July 27th, 2009 at 6:47 pm

    Many people are looking to hybrid vehicles and clean diesel vehicles as their next purchase to increase their gas mileage and reduce ownership costs associated with fuel prices. I think a key aspect in increasing engine efficiency lies in power transmission. When you move a source of energy, such as electricity through power lines, and then convert it into useful work, like driving a motor, you encounter energy loss and low conversion efficiencies. Imagine an electric grid powered by new clean-coal plants with an efficiency great than 50% (it currently sits just under 30%). You are in effect almost doubling the amount of energy we get from burning the same amount of coal. Now, you can begin to talk about replacing gasoline motors and gas stations with cleaner electric engines and recharging stations. It should be the wave of the future.

  17. Ruri@Free article submission says:

    July 31st, 2009 at 4:28 am

    It seems I interested with Aptera diesel-electric hybrid car. The car design look cool. but strange I never seen this kind of car in Australia.
    .-= Ruri@Free article submission´s last blog ..Cisco Training And Study Online Providers Considered =-.

  18. igre says:

    August 8th, 2009 at 10:44 am

    Rising Gas Prices can cheange your decision , for example if you want to buy some SUV and you know for Rising Gas prices then you will probaly choose some other car, because it is much better for your budget.

  19. AndyBedford@MortgageBroker says:

    August 25th, 2009 at 2:32 am

    If car manufacturers really wanted to make fuel efficient cars I think it’s time for carbon fibre to come out of niche manufacturing and into the mass market. the potential for fuel economy is mind boggling, rather than build some hybrid that really doesn’t do much better than a normal car but also comes with a fuel cell that’s a ticking time bomb for chemical waste.

  20. scooters says:

    September 3rd, 2009 at 12:09 am

    Thanks for the information. Before buying the car , you need to consider also your budget and what effects will bring it to you . Rising gas price is definitely a news today as it affect everyone ,

  21. Alan Barker@Roy Utah Real Estate says:

    September 8th, 2009 at 3:27 pm

    Gas Prices are rising again quickly because the economic is now showing some positive signs and the need will arise but I think with the current climate, people have began to enjoy their current vehicle rather than go for a new one. At the moment one thing is getting better and thats House Prices, they’re improving. GM has also signed some deal with China or Japan to help them in making them their Trucks. I think slowly but the market for cars will rise again.

  22. mike@conversion-vans.net says:

    November 3rd, 2009 at 4:26 pm

    Here we are 10 months later and gas prices are way up again and climbing. Gas prices are artificially controlled and tied to the American Dollar. They simply do not follow the logic of the market but are regulated and inflated as countries who desire to profit adjust them as they see fit. In 1972 we were told that Gas was going to run out completely. Even had the odd/even line up days. But there is not a shortage of gasoline, just price controls by those who benefit most. And it makes little sense to base an automobile purchase simply on the price of gasoline. You have to factor in the cost of the vehicle, insurance, maintenance. it’s often cheaper to just keep putting fuel into your existing vehicle.
    .-= mike@conversion-vans.net´s last blog ..Conversion Van | Ford Van | Chevy Van | Used Vans | Sprinter Van | Custom Vans | Camper Van | Class B =-.

  23. VW Camper Vans says:

    May 18th, 2010 at 3:42 am

    Gas prices is one of the major crisis in our economic issues. You have post a very interesting article. thanks for sharing some advices with regards to the gas prices problem.

  24. Steven says:

    August 17th, 2010 at 4:05 am

    L’ last summer in Europe, the price of gas is very expensive! It reached nearly 1,5 euros per liter. I want to buy an hybrid car, because with this high prices of the gas which I must pay half of my money on gas

    YEAH, I experienced almost the same! But when I was in CHINA, they got ridiculously high gas price!

  25. jj@Car Seat Upholstery says:

    August 30th, 2010 at 4:27 pm

    I recently bought a 2010 Honda Fit and the MPG is pertty good. The other morning on a long trip I started off at 41 MPG and it leveled off around 35 MPG. Only problem is it only holds 10 gallons of gas..but overall its great and I expect the milleage and fuel efficeincy to improve as the car breaks in.

  26. Stan | Discount Tire Coupons says:

    November 30th, 2010 at 5:02 pm

    The gas prices aren’t really that bad in the US compared to what is going on in most EU countries, especially the post-communist ones. If you look at the gas price to average salary ratio in the US, it still is pretty good.

  27. Love to save gas says:

    March 12th, 2011 at 5:23 pm

    I keep 10 clams a week in my pocket just driving a little slower because of a great app I found in itunes called MPG Gas CalcuSaver. This app shows it only takes me a couple extra minutes of drive time a day to save a lot on gas – this is a big help these days with high gas prices. The app is easy and totally worth it.

  28. car repairs sandringham says:

    April 20th, 2011 at 1:06 am

    Hybrid or fully electric cars will be the new trend in the future due to its economic!!! thank for sharing to everyone!

  29. Pressure Compression Socks says:

    September 2nd, 2011 at 4:29 pm

    Yes, while gas prices “aren’t that bad compared to other countries” it is still much higher than it was just 10 years ago. The massive climb in prices of oil have created a push towards alternative fueled vehicles.

  30. Tom@fashion designer brands says:

    May 29th, 2012 at 4:34 pm

    The gas price in Europe 2 x times the price in US.