Low gas prices lead to surge in SUV demand
Dec 27, 2008 Auto Tech, Green Technologies
Ford F-150
“Fool me once, shame on you; Fool me twice, shame on me”, may go an old adage, but car buyers in US don’t seem to have learnt! Automotive website Edmunds.com is reporting that truck and SUV sales will surpass car sales in December in US. That’s something that hasn’t happened since February 2008. Additionally, hybrid sales are expected to dramatically plunge for December.
Gasoline prices in US prices have fallen below $2 a gallon, from the highs of over $4 few months back and many people are rushing out to buy the big cars and SUVs, forgetting that gas prices may again spiral up, due to a variety of reasons. But few of them seem to have made the decision seeing the inclement weather (SUVs/4-wheel drives will be safer in snow), while others may have been seduced by the huge discounts currently on SUVs (upto $5000 in some cases!).
On the flip side, the sales of fuel efficient smaller cars have declined. While earlier in the year, there was a waiting list for the hybrid Toyota Prius, In November alone, falling gas prices caused a 48 percent drop in sales, and things won’t be too cheerful in December. Read the rest of this entry »
Tags: Auto sales, Edmunds, US