Tanada wrote:I wonder how things will change this time around? It was almost like magic where I live, just as soon as gasoline price fell below $3.00/gal the sales of SUV's and Pickup trucks went back to 2005 like levels as if the new prices were a permanent condition. Now gasoline is bouncing between $2.35/gal and $2.75/gal so I am wondering, with $3.00/gal be the cut off going up the same way it was in prices coming down in 2015?
The interesting thing is that without even going to a pure EV, the response can now easily be different than driving far less, IF $3 or $4 or whatever price is truly a problem for new car buyers or expensive car buyers.
Real world, a midsized mondern HEV (no plug needed) that can cart around 5 people comfortably can get well over 40 mpg. Over 50, if one is willing to drive a small, efficient car.
So for everyone who doesn't "need" a big SUV or truck to haul large loads or do heavy work (over 80% of folks? maybe 90%?) there are now plentiful middle class solutions that can easily deal with that problem.
(The main problem thus far with low gas prices is that makers like Toyota for the new hybrid Camry and Honda for the new hybrid Accord don't seem to WANT to sell many of those, having very few on many lots, much less in a variety of trim levels to try to give customers a real choice vs. the ICE version. I'm hoping if higher gas prices become a reality, that economics (e.g. competition and customer demand) will force them to get serious about stocking and marketing such high mileage alternatives).
For truly poor people, that's more of an issue, but if you're on food stamps, can't afford your rent etc, then things like taking the bus, riding a bike, living close to work, carpooling, etc. should at least be considered by rational people who truly need to save money.
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OTOH, I'll contend that for the vast majority of people in the first world, it's more an inconvenience than a major issue. Last time I checked, median household income in the US was approaching $60,000 a year. The average transaction price for a new car was well over $30,000. With numbers like that, most people can well afford an extra few hundred or even several hundred dollars for fuel, even if they don't LIKE it.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.