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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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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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Replying to: gagrice (Jan 10, 2009 4:40 pm) I just think we have been brain washed into believing the latest thing somehow is worth more than it should be. To me a fool is one that will stand in like to buy a Iphone at whatever price the company says it is worth only to discover they had the next one on the burner before they ever got out of the store. They won't work an extra fifteen minutes at a job they are being paid to do but they will stand outside of a store all night to be the first one on line for a phone that don't need. Then call in sick the next day because they have been up all night. Yes it sounds like a ramble but that was just what happened with the Prius and just like the phone everyone waited for they can not get one at a discount. Instant gratification effects far too many people and knee jerk responses are most often the results.
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Replying to: boaz47 (Jan 10, 2009 8:20 pm) We have 4 thrift shops in Hilo that we like, and at least a dozen here in SD. I am a sucker for a $3 Hawaiian shirt if it was made in Hawaii. I don't buy any of the others. I look for the older brands that have become somewhat collectible. I never had to dress up for work so wearing a tie is a horrible experience for me. Less than 10 times in the last 20 years. I also would NEVER wait in line for the latest anything. I wait until they are old tech and buy at a big discount. Sure as anything next year the latest will be less than half price. Too bad we are captive to whatever the price at the pump is for gas. Back to $2 gas here. Maybe it will slide back a bit. Oil is back at $40. PS I got in on the Sprint Pioneer plan and have had the same service for 8 years. Free except for any outgoing calls. I rarely have a cell bill over $1.20 per month. They sent me an upgraded phone a few years ago.
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Replying to: gagrice (Jan 10, 2009 9:10 pm) I also like to wait until the bugs have been worked out of whatever I want so I won't have to be the guinea pig. |
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Replying to: gagrice (Jan 10, 2009 4:40 pm) Who are you, Magnum P.I. ?
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Replying to: oldfarmer50 (Jan 11, 2009 7:28 am)  They are comfortable and colorful. I would slit my wrist if I had to wear a suit and tie every day....  A friend in La Jolla owns a used men's clothing store. He took in 400 Hawaiian shirts from a Doctor that had passed away. Many still had the tags on them. Of course I got the pick of the bunch. If you are in La Jolla check out "Le Chauvinist". He has some great high end suits and cloths. Salvador is a great guy and good friend.. http://www.lechauvinist.com/ |
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I still have the $1.40 stuff in my tanks. since I bought it last year, we have seen 1.79 then 1.99 now 1.86. Wholesale gas is 1.11 which is about 1.71 a gallon For me gas is now about $175 a month, but even that is more than insurance is for 5 vehicles. Interest is nothing. Only my '01 truck can depreciate and not by much anymore. 7% sales tax along with $400 excise tax seems like takes years of gas savings to recoup. Dumping my '96 that runs excellent for about $800 to make room in my driveway for a crampier, gutless 4 cyl that will depreciate $1500 every 6 months, for years, has to be weighed against the tiny piece of the 100 gallons that could be saved. I'd still have my 4 biggest engines left. |
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in several months, gas is up - the average price is up $0.12 from a month ago, still only $1.78 though. Here in the Bay Area our average price is $2 right on the button. Very manageable.  I think if gas gets back to $3 this coming summer, it will put the squeeze on many folks much more than $4.50 gas did last summer, and those dealers who are hanging onto a bunch of Priuses may live to cheer their decisions to load up on them now while things are slow. But I could well be wrong. That's the great thing about Edmunds, you can speculate and have 25 people remind you how wrong you were later on! Except perhaps for the May-July period last year, I would think most Prius purchases were calculated and intentional, and those buyers are not regretting their choices now even though the price of gas is at 5-year lows. Remember, only 1 of the 3 reasons people buy those cars is to save money - they also do it to (1) make an environmental statement, or (2) reduce imports of foreign oil because they feel it is a national security issue.
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