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Automotive News, Car Buying, Fuel Efficiency (MPG), Coupe, Hatchback, Truck, Sedan, SUV
Oct 02, 2007 (4:01 am)
People started to grumble at $2 per gallon that gas guzzlers were doomed.
Then it was $3.
Now they're talking about $4 gas as the tipping point where people start to dump low mileage vehicles for more efficient choices.
Seems like we have a moving target.
Will we ever reach a Pain Point and see people dumping larger vehicles for more economical rides?
#2 of 60 Re: Pain Point? [pf_flyer]
Oct 03, 2007 (1:19 pm)
I think the quick retreat of fuel pricing after the Katrina spike gave some owners and buyers hope that fuel would stay under $2/gal. Now that it's settled in the $2.50-$3.50 range lots of buyers are actively ignoring the gas guzzlers.
I think it's been tipped as you say but those that have such vehicles are keeping them for the times that they are needed but picking up additional vehicles for everyday use. Sales of new BOF SUVs are down everywhere from 10-30%.
A lot of these vehicles may disappear as the time comes to renew them.
Oct 03, 2007 (1:44 pm)
If you take a look at the car dealers, at least around here, most of the cars, new and used, displayed prominently for easy viewing from the road are larger vehicles.
Just a casual observation
#4 of 60 Re: Casual glance [pf_flyer]
Oct 03, 2007 (1:59 pm)
The profit is still in the big vehicles so it makes sense to promote them. But in the same way that bread, milk, eggs and OJ are in the far corner of a supermarket it makes sense to keep the high margin products in the customer's eye to make them walk the aisles to find the basic necessities.
#5 of 60 Re: Pain Point? [pf_flyer]
Oct 03, 2007 (2:41 pm)
I used to think so, but maybe not.
Europeans routinely pay more for gas than Americans do.
They still sell a fair number of big cars, and SUV sales are rising there.
They also sell alot of small cars too, so maybe the tipping point is $5-6.00/gal which has been the traditional European price point.
#6 of 60 Re: Pain Point? [volvomax]
Oct 05, 2007 (8:05 am)
Buying behavior was changing at $3 but I would say $4 is a significant behavior changing pain point. A pain point a la 80's where there is a sea change in buying behavior. Don't get caught in a Guzzler resale wise.
Oct 05, 2007 (9:41 am)
Remember that from $1 to $2 looked like a 100% increase(igoring inflation)
$2 to $3 is only a 50% jump
$3 to $4 is only 33%
So while each level is $1, the underlying increase in pressure can actually seem to be less to most folks.
#8 of 60 Re: Diminishing pain? [pf_flyer]
Oct 05, 2007 (3:55 pm)
Appreciate your point but look at the gross dollar difference. 15000/20=750 g x $4= $3000 a year for gas!. At 40 mpg you could save $1500 per year.
#9 of 60 Pain Point
Oct 05, 2007 (4:11 pm)
The price of gas may not be so much the problem but if we start to see lines like we saw in the 70's and 80's.
I don't know if it could happen today, but if you were a driver back then , you remember the pain on sitting in line on you odd or even number day.
#10 of 60 Re: Casual glance [kdhspyder]
Oct 05, 2007 (8:03 pm)
Big vehicles are a bargain right now. I have one Toyota dealer down $9k from MSRP on a Sequoia limited 4X4. It may be the one I buy. Still looking for the right color.
If I was driving as much as you I would probably have a Jetta TDI. For me $5 per gallon gas and 15 MPG is not even a factor in my budget. My water bill is higher than my gas bill each month. We will run out of water before we run out of fossil fuel. I am going to ride in comfort. I don't plan on leaving a fortune to my children. If they get a $1000 when I die it will be more than I ever inherited.