Small-car interest falls with gas prices

[NeoConsSuck]

The pain of $3 gasoline is only a month old, but rapidly falling fuel prices seem to have made Americans less interested in fuel economy.
Buyers haven't re-embraced big, gas-thirsty SUVs. But several measures show waning enthusiasm for fuel-sipping.

That's probably because motorists have accepted and absorbed higher fuel prices and no longer fear shortages, says Philip Reed, consumer advice editor at car-shopping site Edmunds.com. "People will pay almost anything for gas. What freaks them out is when they just flat can't get it," he says. Today's prices are about 60 cents a gallon less than the September peak. "They don't like it, but it isn't as bad," he says.

Three popular Internet car-shopping sites report notable drops in users seeking information on gas-electric hybrids and other fuel-efficient cars.

Edmunds.com says interest peaked Aug. 29 when Hurricane Katrina hit. That week, 19,500 users went to Edmunds' page on fuel economy. But that's dropped to about 3,000 views a week, the same as it was in early August.

http://www.usatoday.com/money/autos/2005-11-03-no-gas-pain-usat_x.htm

[NeoConsSuck]

1. My take on this..

The price of the gas drop was predictable. Just in time for the Christmas shopping season, when the oil industry doesn't want to upset the profits of the retail industry. "Hey, we got our profits back in the fall, now it's your turn!"

And, is the price of home heating oil dropping at the same rate of gasoline? No?? Predictable.

Sorry, but Mericans deserve everything they're getting from this misadministration, and they deserve to be raped and plundered by the oil industry.

[silvermachine]

28. Also just in time...

...to try to save this administration from completely imploding. Gee, whenever Idiot Boy is in trouble, we either have a terra alert, or something like falling gas prices to divert attention away from the Bush Crime Family.

[Born Free]

2. I agree that after Christmas we will pay

Wal-Mart was complaining so the oil companies backed off, fed the Americans some good old fashioned Bull Crap to explain it all and - wow, away they go, off to shop at Wal Mart. It's almost unbelievable how gullible many Americans are. However, after the Christmas season, we will be bake to gouging.

[Bru]

4. I see it this way...

I read an article (can't find it online now) about a month ago saying that Wal-Mart would *benefit* from the oil and gas heating price increases.

The argument was that people would have less money to spend on gifts, but they wouldn't buy less gifts, they'd just get cheaper ones. So instead of shopping at higher-end stores like the Gap, Banana Republic, or Pottery Barn (who will be the real losers this holiday season), people will shop proportionately more at Wal-Mart.

I'm not sure what I think of this argument, but I think it has some weight to it. Most Americans still will have the urge to buy a ton of crap, and they won't want to compromise by buying less.

[oostevo]

27. Sort of?

I agree with your premise that WalMart would benefit marginally from people in the middle and lower tax brackets looking for cheaper gifts, but I don't think that Banana Republic et al. would be hurt by rising oil prices.

Boutique stores like the Banana Republic cater to buyers who are in the upper-middle and just plain upper class. People whose savings aren't affected to any measurable degree by having to pay an extra $20 or $30 or $100 a week for gas. These people just keep shopping there, no matter the economic situation.

In fact, in times when we have higher gas prices (or just cost-push inflation in general), boutique stores tend to do quite well (or at least aren't hurt).


By the way ... welcome to DU!

[fasttense]

3. The oil companies made huge profits by gouging and have

gotten away with it. Now they know how to do it, what's stopping them from doing it again, after the complaints have died down?

[salin]

5. Allegedly Ford aims to sell 100,000 hybrids - in ten years, while

Toyota aims to sell 100,000 hybrids in a year.

If true, those goals say a great deal about the different types of forward thinking between the companies.

[pinniped]

6. Gas was about dollar less last year than at its peak this year.

I have a receipt to prove it.

They have succeeded in making people believe the gas is cheap now.

The POS* will continue conditioning Merkans every year as long as they can.

--motorists have accepted and absorbed higher fuel prices and no longer fear shortages--

[mbperrin]

10. Thank you!

I also keep receipts over the years, and most people (including my students) just CANNOT believe the differences! But there it is.

Great tactic - bounce it as high as a sixteen story building, let you back off on the 12th floor and convince you it's the ground!

[keopeli]

7. This is just GM and Ford influencing the press. Big cars are out

[Tesha]

8. Are Americans the dumbest people on the planet or what? (NT)

[llmart]

21. That must be a rhetorical question:)

[KansDem]

29. I...RESEMBLE...THAT...REMARK!

[The Backlash Cometh]

9. This does not paint the whole picture:

(1) It doesn't say anything about poor people who have been pushed out of the market all together. What social costs will we have to bear now that these people can't afford to even get out to find work?

(2) It doesn't say anything about what people are cutting back in order to afford the higher cost of gas. Rob Peter to pay Paul.

[all.of.me]

11. 'rapidly falling' ?

10 cents a week is not rapid in my eyes. it's down to 2.79 as of yesterday. that is still higher than pre-hurricane prices. 'rapid' would mean to me to put it to 99 cents TODAY! then i could reschedule my life and quit trying to do all my errands at once and quit worrying that my tune up is overdue......

[bleedingheart]

12. How about a poor economy and market saturation?

the car industry relies on a lot of morons buying new cars every year or two.
Many people are finding their budgets tightened by things like Healthcare costs...and others may be buying used to avoid the high mark up on new cars.

[screembloodymurder]

14. For the few months, Ford and GM sales are down 25%

They are desperate to change the trend away from SUVees. As things deteriorate, you are going to see more and more lies about the economy. The idiots think if they coax the consumer into more debt the economy will recover. Look at the number revisions. That's where the lies are covered up.

[PurityOfEssence]

13. Lemmings

One of the undeniable justifications for Social Security is the ridiculous lack of foresight of Americans.

Oh goody: there's a temporary drop in gas prices down to merely "really high", and suddenly it's the good old days. Anybody with a scrap of sense can see that oil is finite and going to go way up in price even if there isn't any disruption of production and distribution. (By the way, there are going to be disruptions...)

[Strelnikov_]

15. Easter Islanders Interest In Timber Alternatives Wanes With Falling Prices

The pain of 3 chicken per log timber is only a moon old, but rapidly falling prices . . .

[hatrack]

17. ROFLMAO!!!!

Thanks, I needed that! :toast:

[brainshrub]

16. Fucking idiots.

I now drive my bike and take the bus everywhere I need to go; I love it. I now only refuel once a month unless I take a road-trip.

I've made lots of new friends and connected with my community in a way I didn't know was possible before.

Americans who decide to hold on to their gas-guzzling SUVs are in for a rude awakening next year.

[400Years]

19. glad to hear you are riding your bike

for those of us who are in a situation to do it, we have a big advantage over those who are car dependent.

[fshrink]

18. Fantasies promote short-sighted tunnel-vision.

SUV are attempts at fulfilling fantasies, and accessorily a means of transportation. On a mass-level, this will stop only when filling her up will represent for most a choice between an essential and a accessory expense. In this country, probably 10 to 20 years.

[Jamison]

20. The sheeple are becoming complacent

because of the falling gas prices. I guarantee the large SUV drivers will be crying again next summer during hurricane season when it goes back to $3-$4/gal.

[catmandu57]

22. I don't do much driving now

but the other day I had to go to stinktown 15 miles down the road, there were duallie trucks, suxs, big ass pickups and regular cars passing me like I was standing still. I guess 60 mph is too damn slow, how quickly they forget, last month these were the very people moaning and bitching and pitching a fit about how much fuel was costing.
We'll hear the same damn thing starting next spring, these idiot didn't learn a damn thing, slow down conserve, dammit.
Three more soldiers will die tomorrow so you can drive your gas hogs.

[yellowcanine]

23. Wow! Talk about short attention spans/memories. Americans seem to

lose all common sense when it comes to their cars. If a car is compensation for an inadequate penis in a man, how does that translate for a woman? Inadequate vagina? Penis envy?

[BiggJawn]

24. And the "Bike Boom" went kablooey, too.

I have correspondents who own/work in bike shops in MA and WA and other places. They report that while they couldn't get the things assembled fast enough in August, they can now play frisbee in their showrooms w/o hitting anybody...

[HuckleB]

25. Short-term memory has been replaced by carelessness in human evolution.

[leesa]

26. Brought to you by GM, Ford, etc. What a load.

Although Americans are awfully stupid and extremely susceptible to marketing...

[NickB79]

30. Gas prices always fall in winter, and always go back up in summer

It's been like this for years; $2/gal in summer, $1.70 in winter, then $2.50 in summer, $1.90 in winter. This summer, $3/gal, and now $2.25 in winter. Next summer gas will go back up to $3+/gal, and people will be completely suprised and outraged like they always are.

The average American's memory has now fallen to the point where I'm surprised people can find their way home at night.

[Thangalin]

31. Best Transport of All: Scooter

Yes, it's true. The Honda Ruckus (Google it) happens to be one of the world's greatest creations. Speaking of creations ... if anything were to prove Intelligent Design, I'd say it was the Ruckus. Low on gas, great performance, excellent handling. I bought one last year and haven't looked back.

$0.03 to go 1 km. That's like $0.04 to travel a mile, or so. Canadian dollars, so I guess that makes it about a 2 cent mile.

[tammywammy]

32. I've seen this first hand

The week or so after Katrina until probably a month ago, people were swarming in to look at diesels. It was SUV after SUV being traded in. I'm talking about 40 phone calls a day to see if we had TDIs (diesel) in stock.

Then a few weeks ago the phone calls started to drop off and the demand has gone down. People are still trading in their SUVs for something with better mpg, but the overall demand has gone down.

BTW, I've owned a diesel for 2 weeks now, and love it. :loveya:

I just think people get complacent. They think "well, $2:30 isn't great, but at least it's not $3."