NEW YORK (CNNMoney.com) - More than a third of American drivers say they are considering getting rid of their current vehicle in favor of something more fuel efficient, according to a national survey by Consumer Reports magazine.
Of those who say they might replace their current vehicle, half say they are considering a gas-electric hybrid vehicle, according to the survey.
"High gas prices are not just an inconvenience anymore," said Robert Gentile, director of Consumer Reports' Auto Price Services. "They are forcing people to reconsider what and how they drive, even the way they live their lives."
Only eight percent say they are considering a diesel vehicle. Diesel vehicles get better fuel mileage than gasoline-powered vehicles and don't have as much added cost as hybrid vehicles. They are unavailable in some states, though, because of their relatively dirty emissions.
Fifty-five percent of those who are considering replacing their vehicle are planning to get a small car. About 20 percent are considering a family sedan or small SUV. Fewer than five percent are considering a luxury sedan or large SUV, according to the Consumer Reports survey.
Fuel efficiency was a very important consideration for all of those considering a hybrid vehicle, but for most it wasn't all about financial savings. A desire to reduce U.S. oil consumption was important for 70 percent of them and the vehicle's "environmental friendliness" was important for 64 percent.
So what does this survey tell us? As gas prices go up, people want to find a way to replace their old gas-guzzling cars with something more fuel efficient. We've seen this back in the 1970s, when the Arab oil embargos forced Americans to dump their gas-guzzling Detroit iron for the more fuel efficient Japanese cars of Honda, Toyota and Datsun (Now Nissan). During the 1990s, people snatched up the big gas-guzzling Detroit SUVs, and are now wishing they could replace them with the more fuel efficient hybrids--of which the Japanese car companies Honda, Toyota, and Nissan are happily selling. And as for the Detroit Big Three automakers? Well, they were caught flat-footed in the 1970s for not seeing the market shift to fuel efficient cars, and today they were caught flat-footed for not seeing the market in hybrids. And Detroit is still playing catch-up.
Amazing how history repeats itself.
Ah, but will history repeat itself with a drop in crude oil (and correspondingly, gasoline) prices as in the 80s? I was astonished earlier this month to read gov't and industry predictions that gasoline prices would DROP through the summer, as much as 75 cents by Labor Day. Say what? Gas has for years gone up in price through the summer.
ReplyDeleteI can only guess that either the talking heads are gaming us for some reason about the price drop, or that they have such thorough control over supply and distribution that they can easily manipulate that result JUST in time for elections. The latter makes more sense to me. Guess I'd better calibrate my tin hat a little tighter...
Nightshift: Gas prices will drop through the summer, by as much as 75 cents by Labor Day? Gas prices here in California are at $3.30 a gallon. A $.75 drop would make gas prices here at $2.55 a gallon--Who is drinking the spiked Kool Aid here?
ReplyDeleteYour analysis is very interesting--and scary. To think that Big Oil has such a lock on price fixing to where they can actually manipulate the price of gas just before the elections, so that they can continue maintaining Republican control of government, and of their own control of the energy economy in the U.S. is even beyond my own comprehension. Unbelievable! Does Corporate America have this much control over our economy and government? Is the corruption of corporatism within our government this pervasive?
I'll certainly be watching gas prices over the course of this summer.