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Rising Gas Prices Could Change Consumers Buying Habits
March 17, 2011Posted by on
As gas prices threaten $4 a gallon auto industry professionals are forecasting a change in consumers buying habits.
As gas prices have increased into the upper reaches of $3 a gallon auto dealers prepare for a change in customers buying habits. Demand for smaller vehicles may be on the rise sooner then later.
Consumer buying habits tend to follow gas prices. In early 2008 gas prices had increased to $4 dollars a gallon and more people were buying fuel efficient vehicles. That same year when gas dropped from $4 to $3 dollars a gallon demand for less efficient vehicles increased.
According to the U.S. Energy Information Administration there is a 25% chance that gas prices will raise to $4 a gallon this year. This increase is directly related to crude oil prices hitting their highest point in 2 years.
Until this price increase happens it is likely consumer buying habits will stay the same.
Pat Adams, a sales manager at Mankato Motor Co., said there hasn’t been a 2008 style push for smaller more efficient cars. Adams attributes this behavior to drivers being better prepared for pump prices to increase. “But 4.50 gas could change all that.”
Once gas prices reach $4 to even $5 dollars a gallon concern starts to take hold of not just buyers but gas consuming companies as well.
Volk Transfer of Mankato has 14 diesel burning trucks that log over a million miles a year. Increased gas prices could mean implementing speed restrictions and fuel conservation programs.
There is still realistic demand for large vehicles, but with higher gas prices looming in the near future people who own these trucks and SUV’s will be feeling the hurt at the pump.
$70 dollar fills of the tank are never fun. Maybe as history repeats itself costumer buying habits will change with the mounting weight of gas prices.
Keywords: Gas Prices, Increase, Buying Habits