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Automotive News & Views How does gas at $4 and higher impact you?
2183 messages, Last post on Nov 21, 2009 at 5:13 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: snakeweasel (Jan 07, 2009 3:36 pm) Very true, except for shipping and transportation. Trucking will charge based on fuel charges as a prime concern. Raise fuel taxes and that price becomes a direct cost to the vendor or the customer. If the manufacturer or the end customer wants to cover part of the price based on gross sales they can but it takes only a few weeks for grocery products to go up because of increased fuel prices. But just like gas stations it seems to take longer for the prices to come down. But that could be because the manufacturer or end vendor decide to cover the increased cost for a short time and re-coop after the adjustment. |
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Replying to: snakeweasel (Jan 07, 2009 3:36 pm) My point would be car weighs 4000 lbs, truck weighs 80,000 which is 20 times the load. With that argument, trucks would be paying around 1/3 per weight unit. On the other hand...18 wheels vs 4 (not considering the weight per tire) would equate to a ratio of 4.5, so 6 time would be overpaying. My opinion is that trucks cause more damage than they pay in relative tax, but I have no data to prove it. 
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Replying to: wlbrown9 (Jan 08, 2009 10:34 am) They never seem to have an explanation when I ask how the rain manages to fall in parallel ruts on the roads. 
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Replying to: steve_ (Jan 08, 2009 11:12 am)
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Replying to: gagrice (Jan 08, 2009 1:04 pm) What I have seen in East Arkansas (no studs allowed on tires) seems to be based somewhat on the local ground. This area is all silt from the Mississippi river...1/4 - 1/2 mile deep before you hit bedrock. Mississippi embayment runs from Little Rock to Jackson, TN. When they built these interstates the roadbed was not prepared deep enough. Original concrete I-40 started breaking up after a number of years plus weight limit was raised from 72,000 to 80,000 to match the rest of the country. Eventually asphalt was laid over the repaired concrete. The asphalt eventually developed ruts due to the heavy weight traffic. A major factor in this was lack of support from the silt under the foundation of the roadbed as well as the increase in load limits. |
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Replying to: snakeweasel (Jan 07, 2009 3:36 pm) Oh come on, I LOVE graphs and formulas!  I guess my point is that there is no free lunch. The choices we make will have many concequences, some intended, some not. A business can only absorb so much additional cost. Competition can hold off prices increases for awhile but in the end prices rise or the business goes bust.
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Replying to: oldfarmer50 (Jan 09, 2009 4:30 pm) the guy that used to do them quit so they asked me to do them. of course i said yes. the next week he came back, but i am still doing them.  btw, i have almost a 1/2 a tank of gas left and i filled up on 12-29, so $4 gas wouldn't hurt me too much. |
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We have a fundamentally very different market than we did when gas was $4 a gallon, say the experts. The oil market was pushed up to such extraordinary records by a flood of investors looking to move their cash into commodities as a safe haven from stock market volatility. Furthermore, the U.S. dollar was very weak in the summer months, and that also worked to support the price of oil, and by extension, gasoline prices. But now we have: 12.5% underemployment 2.6 million good jobs lost in 2008 retail purchases are shrinking back to necessities as people live in economic fear. If you are not going to buy, the car just sits did overextended home mortgage people buy all the V8 suvs, and now their gas money goes to the house? |
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We now realize there was no reason to pay $4.00 a gallon for gas. It was smoke and mirrors. I remember hearing that is was heading for $8.00 a gallon maybe $10.00 if the, "gas is just too cheap in the US", people would had anything to say about it. And we know there are several that believe we should pay more for gas. But reading the WSJ and some other papers this week we discovered something else. Jeans simply aren't worth $200.00 a pair. DKNY has reported that with their Christmas and after christmas sales people have become accustomed to 60-75 percent discounts and it will be very hard to charge full price for many of the goods in the future. Talking to customers people are saying they will simply wait till they see a sale in the future rather than paying full price for cloths and other goods. Like I have said many times, fuel is like any other product, it is only worth what we are willing to pay for it.
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Replying to: boaz47 (Jan 10, 2009 12:03 pm) At that same time there was a waiting list for a Prius at many dealerships. Now one dealer in San Diego has 106 Prius on their inventory. Amazing how 6 months can change things. Talking to customers people are saying they will simply wait till they see a sale in the future rather than paying full price for cloths and other goods. I mainly shop for cloths at the many thrift stores my wife loves to go to. Or maybe I will splurge and go to a Ross Dress for Less. I doubt that I average $100 per year on cloths and have a huge walk-in closet full. Over 100 Hawaiian shirts alone. Never pay retail has been my motto for a very long time. |
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