Gas Prices and fuel economy (car loan, vehicle, 2012, SUV)
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In a season where gas prices usually drop, I am somewhat surprised to see gas prices over 3.00 dollars in most places. The price of fuel appears to be increasing 2-5 cents each week.
Even when gas prices were going around 4.00 dollars a gallon in 2008, I am almost certain gas prices were not hoovering around the three dollar range during the winter. One senior economist say fuel prices will be over 5.00 by 2012.
For the drivers in this board who drive vehicles that are not fuel efficient and bad for the environment, would the increase in gas prices change your driving habits? Will it convince you to get rid of the gas guzzler and purchase a more fuel efficient vehicle?
The way the economy is these days every cents count and I dont understand the reasoning why you should fill up a big SUV or pick up truck for 60-75 dollars every week and half maybe less depending on your driving habits, compared to just getting an economic sized car like an Aveo where it usually 30-35 dollars to fill up the tank. Hey, if you have the money, more power to you, I am just concerned with the majority, because gas prices are not going to drop.
Last edited by prinessdanika99; 01-14-2011 at 02:07 PM..
It all comes down to the real dollars and cents economy of the individual situation. Someone whose not carrying a car loan and hence, doesn't have a monthly payment on an otherwise ineffecient vehicle is generally saving money versus buying something else. Even if they are carrying a note and the vehicle is almost paid off than they are still probably better off just continuing on with the inefficient vehicle they have.
What often happens is that people swoop in and start purchasing older (hence cheap), but efficient used vehicles, causing the pricing of those cars to go way up. That is exactly what happened in the summer of 2008. People bought up all the efficient new cars and then the prices on used cars like Corolla's, Prius' and even Cavaliers and Cobalts went through the roof.
The thing is, people need to think through the total costs involved in the transaction and not just the dollars they pay at the pump. A lot of people who traded in SUV's for Prius' the last go around took a massive beating that will never be recovered in fuel savings.
For the drivers in this board who drive vehicles that are not fuel efficient and bad for the environment, would the increase in gas prices change your driving habits? Will it convince you to get rid of the gas guzzler and purchase a more fuel efficient vehicle?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Bad as it seems at $3.25 here now, I too expect it to go way up. Gas prices seem able to do their own thing as far as supply and demand. With a shortage, the prices go way up. If people use less, the prices go up.
The oil companies will make their profits regardless of the market.
I bought a little old Escort that gets 32 mpg to commute, and let my Ranger rest unless I need 4wd due to snow. I also have a carpool and drive so that the others pay me and I spend nothing on gas for the drive to work and back.
Still we have cut back on weekend and evening trips. As long as they are charging so much I'll do my part to try and reduce their sales.
In a season where gas prices usually drop, I am somewhat surprised to see gas prices over 3.00 dollars in most places. The price of fuel appears to be increasing 2-5 cents each week.
Even when gas prices were going around 4.00 dollars a gallon in 2008, I am almost certain gas prices were not hoovering around the three dollar range during the winter. One senior economist say fuel prices will be over 5.00 by 2012.
For the drivers in this board who drive vehicles that are not fuel efficient and bad for the environment, would the increase in gas prices change your driving habits? Will it convince you to get rid of the gas guzzler and purchase a more fuel efficient vehicle?
The way the economy is these days every cents count and I dont understand the reasoning why you should fill up a big SUV or pick up truck for 60-75 dollars every week and half maybe less depending on your driving habits, compared to just getting an economic sized car like an Aveo where it usually 30-35 dollars to fill up the tank. Hey, if you have the money, more power to you, I am just concerned with the majority, because gas prices are not going to drop.
You really should build your own spreadsheet and work out the economics of replacing a vehicle early with a more efficient vehicle. You would see that in most cases the owner will spend thousands more to replace the vehicle.
Consider a 4 year old Chevy Tahoe. Let's say it averages 16 MPG. The owner drives 15,000 miles per year. If they pay $3 per gallon for fuel, they will spend $2,812 per year for fuel. If they replace it with something smaller and gets 24 MPG, they only save just $937 per year in fuel.
To achieve that $937 per year fuel savings, they had to buy a new vehicle. If the Tahoe is paid off, then the entire purchase cost is new expense, probably $500/month. So to save $937 per year in fuel, they will spend $6000. Not a very good deal.
If you think this is good for the environment, what do think about the cost of making the new vehicle, and the cost of retiring the Tahoe or doing something else with it? I think we are all better off keeping existing vehicles in service longer, using fewer natural resources to make new cars, and spending less money to buy new cars.
If it is time to retire the vehicle because it is old and not reliable, then by all means choose something more efficient. I would.
If you really think someone here wants an Aveo, one of the crappiest cars made, you are mistaken.
If you really think someone here wants an Aveo, one of the crappiest cars made, you are mistaken.[/quote]
I said like an Aveo dum-dum. It was an example. To clarify, I would prefer if most drivers get a car like the Toyota Prius. Yet due to the economy and for some unexplainable reason the rise in gas prices cheaper fuel efficient vehicles are the way to go.
Cars like the Chevy Aveo or similar in which you can get a 2006 or later model for under 6000 grand, would benefit most consumers rather then having them drive a vehicle where it they have to spend 60 80 dollars just to fill up the tank.
While I was at a Chicago gas station recently, where gas prices are close to 4.00 dollars a gallon. I saw one person with an older model SUV, it took 89 dollars to fill up the tank....he said, I am jealous, this is what I have to deal with every week, bet you dont have to come here every week. I think he was trying to hit on me, but if you have some sort of brain you would save more if you ditch the gas guzzler and get a fuel efficient vehicle.
I guess you ignored most of my post. For most people, replacing a perfectly good vehicle, even a non-fuel efficient one, will cost them more money than they will save on fuel.
I am still puzzled why modern diesels are not brought to US, there are 60mpg cars of Jetta size all over the Europe.
- It's not the emission standards, they can meet all, including particles, including all California gimmicks.
- It's not the regulations. Some modern diesel cars are already here Mercedes, A3? (Jetta TDI sold here is not modern diesel btw, it's 10 years old engine).
- It's not the fuel price, yes, diesel is more expensive, but 60mpg will more than compensate for it.
- It's not the know-how... one of the most successful diesel engine is Ford TDCI.
which leaves either economics (need to build a factory in US without having market for it yet) or conspiracy!!
For the drivers in this board who drive vehicles that are not fuel efficient and bad for the environment, would the increase in gas prices change your driving habits? Will it convince you to get rid of the gas guzzler and purchase a more fuel efficient vehicle?
It would probably change my driving habit but not enough to get rid of my Corvette or CTS-V or even my Silverado. In fact, I'm looking forward to this gas-price high; can't wait till it's $4. I'm looking to score some even larger behemoths for cheap. For example, an 8.1l 3/4-ton Suburban or a 6.8l V10 Excursion.
Quote:
Originally Posted by prinessdanika99
The way the economy is these days every cents count and I dont understand the reasoning why you should fill up a big SUV or pick up truck for 60-75 dollars every week and half maybe less depending on your driving habits, compared to just getting an economic sized car like an Aveo where it usually 30-35 dollars to fill up the tank. Hey, if you have the money, more power to you, I am just concerned with the majority, because gas prices are not going to drop.
It belongs to "you gotta pay to play". Plus, I'm really dangerous in driving a low-powered vehicle and I can't stand it. It has been proven multiple times before. Some years ago I test drove an automatic Scion xB (for a reason I won't mention here), it was so depressing I had to drive the Corvette once I got home.
I am still puzzled why modern diesels are not brought to US, there are 60mpg cars of Jetta size all over the Europe.
- It's not the emission standards, they can meet all, including particles, including all California gimmicks.
- It's not the regulations. Some modern diesel cars are already here Mercedes, A3? (Jetta TDI sold here is not modern diesel btw, it's 10 years old engine).
- It's not the fuel price, yes, diesel is more expensive, but 60mpg will more than compensate for it.
Yes it is, a combination of the three -- well, combination of the two since emissions and regulations are inextractably tied together. While bringing diesels here can be done, the question is, at what cost and to what benefit?
They cost more to build, the emissions regulations make them more expensive still to sell them here (esp. to make them 50-state legal), and our fuel price and tax structure (implicating regulations again) are a disincentive to sell them here. The lower the fuel cost, the longer it takes to recoup the higher initial cost of a diesel -- at our current fuel prices, many average consumers never will during the service life of the car. When fuel prices are at European levels, the upfront costs are recovered much more quickly -- typically within 3 years or less. Additionally, the fuel tax structure in much of Europe is designed to give diesel a slight edge. Here in the U.S. it's the opposite; we tax diesel more to recapture some of the higher costs that trucks impose through their disparate impact on our road infrastructure.
So yeah, economics is the simple answer; but the economics are greatly affected by factors you have dismissed as noncontributory.
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