Fuel prices greatly altering American driving habits, purchasing decisions
05/29/2008, 5:10 PM
By Drew Johnson
It’s no secret that record high gas prices are influencing many of Americans’ purchasing decisions — from how many miles to drive to what type of vehicle to buy — but the rate at which consumers are changing their habits is quite astounding.
Through the first part of 2008, small car and crossover vehicle sales were up 50 percent on 2007 levels, according to Motor Authority. More interestingly, Edmunds reports that there was a dramatic shift in consumer demand for more fuel-efficient vehicles beginning in March, right around the time fuel averaged $3.50 a gallon — supporting Ford CEO Alan Mulally’s claim that the $3.50 mark was the threshold for consumers to jump ship on inefficient vehicles.
Through the first part of 2008, crossover sales have surged 50 percent over 2007 levels, and now own a 6.3 percent share of the market. Compact vehicles have also seen a spike in demand, with the segment now holding a 20 percent share of the overall market.
On the other side of the coin, larger vehicle sales are way down. Compact pickup truck sales slipped by 37 percent while minivan sales tumbled 25 percent, capturing just 4.9 percent of the market. Large SUVs now only account for 4.1 percent of the market, down from 4.6 percent just a year ago.
But no matter what kind of vehicles U.S. consumers are buying, people are also greatly altering their driving habits. According to the Department of Transportation, March showed the biggest drop-off in driving of any month in the history of the organization. Americans drove 4.3 percent less in March, which totals about 11 billion fewer miles drive. The DOT has been keeping such records since 1942.



05/29, 5:16 PM
posted by:
xyunya
By the time Alan Mulally noticed that world is round Toyota sold 1 million Priuses.
05/29, 5:31 PM
posted by:
F3INT))AP3X
I guess that is why they pay him millions of dollars a year and we type commentary on an auto blog.
05/29, 5:40 PM
posted by:
Madcapp
The bright spot in all this high gas price nonsense is that manufacturers are forced to focus on improving their smaller cars, and retards that bought SUV’s and full sized trucks will get peanalized for their stupid decision.
05/29, 5:59 PM
posted by:
davebo
11 BILLION miles worth of driving that obviously didn’t need to be done. Not only will these prices help the environment, they’ll ease commutes by eliminating people aimlessly driving around for no reason, buying crap they don’t need at stores miles apart from each other. You can get all the hybrids you like, but nothing saves gas like not driving when its not actually necessary. I know girls who will drive to 3 different supermarkets to get different kinds of produce, and I can’t imagine one places’ strawberries being several gallons worth of gas better than another’s.
05/29, 6:00 PM
posted by:
mayer_ray_nagin
If people want to change things they should fundamentally alter a lot of things. Cancel cable, skip eating out, don’t run out and buy new junk all the time, and cut driving. Inside of one month the businesses would be up in arms, politicians would be screaming as tax revenues decline, and you’ll see change happen fast. Trimming driving by 4.5% won’t do too much. Hit the whole system in the collective pocketbook and the world will feel it (since we buy half the crap teh world makes).
05/29, 6:03 PM
posted by:
johnnycanuck
I’m paying close attention to used SUV prices. I have a need for a rig that will likely only be driven during the winter months and not everyday. If I see a nice Yukon, Expedition, Durango etc at the right price I’m grabbing it. I suppose it’s a lot like the US mortgage crisis. One man’s misfortune is the other guy’s opportunity.
05/29, 6:53 PM
posted by:
400horseSS
^ yep, I saw a new 2500 Silverado Quad Cab Diesel for 33k it was 47k.
05/29, 6:56 PM
posted by:
Impulsive
Ummm, duh.
05/29, 9:06 PM
posted by:
F451
We were singing,
“bye-bye, miss american pie.”
Drove my chevy to the levee,
But the levee was dry.
Them good old boys were drinkin’ whiskey and rye
And singin’, “this’ll be the day that I die.
“this’ll be the day that I die.”
05/29, 9:57 PM
posted by:
stang67
I have never looked at gas prices when filling up, but even I am thinking about gas mileage when I buy my next car, since I love sports cars I will look at the base Porsche Boxster. Premium gas is over $4.00 today.
05/29, 10:43 PM
posted by:
Molly Dooker
So Davebo, what exactly constitutes “unnecessary” driving? While you’re at it, maybe you could also explain what “crap” people buy that they don’t need. Gosh, I sure do hope to find you on the election ballot this year, that way you’ll be able to tell us all what were doing wrong….
People like this crack me up. They’d rather have a zero economy, everyone be equally poor and miserable, all sucking off the teat of Uncle Sam. Was childhood really that bad?
05/30, 12:55 AM
posted by:
A4
premium gas is over $4.00? damn youre lucky, regular here is $4.19.
Ill have a motorcycle by the end of june i hope.
05/30, 1:44 AM
posted by:
davebo
Molly: read my post again. I gave a perfect example of what I consider to be unnecessary driving. I’m not suggesting everyone has to stop buying crap, our economy would just instantly tank. I buy all the crap I don’t need off the internet, since the mailman has to drive around the neighborhood everyday anyway.
I’m not telling anyone what to do or what driving habits they need to change. People are finally doing that on their own, which was the whole point of the article.
05/30, 2:34 AM
posted by:
olds307
In Soviet Russia, fuel prices greatly alter YOU!!
05/30, 7:12 AM
posted by:
kagon
it sounds like davebo needs a time machine so he can go be with his communist brethren standing in the breadlines.
05/30, 8:54 AM
posted by:
shaver
Im building an ultra-light for my commuting to work in LA. The briggs n stratton just sips gas.
05/30, 9:20 AM
posted by:
DeansterTJ
Molly Dooker, you’re a WHORE! How DARE you!!!! LOL!!!
05/30, 9:21 AM
posted by:
DeansterTJ
We’re getting some mileage out of the American Pie post, aren’t we F451?
05/30, 10:14 AM
posted by:
xyunya
In USA, fuel prices greatly alter YOU as well, according to the article
05/30, 12:51 PM
posted by:
Flipper
This “Hah – hah . . .now your SUV is Too expensive ” tone is quite deserved by the average American driver. But what about the rest of us? I’ve been driving a Honda ( del Sol )with a 1.5 for 12 years now. And also have a 49cc scooter to do my light duty errands. For a lot of us the tipping point came YEARS ago, and this expensive gas hurts.
05/30, 1:42 PM
posted by:
Scarface03
Just by looking at the stats reported by LLN, I’m not sure exactly how much high gas prices are affecting sales. I think the trends LLN reports supports what they’re saying, but it’s not clear cut.
Compact vehicles sales “spiked”, but LLN says doesn’t say by how much. The compact pickup truck sales slipping is probably telling, but what about full-size P/U truck sales? If full size P/U sales are taking a hit, then maybe the people who would ordinarily buy compact P/U are buying crossovers? That could also explain why minivan sales are down–a minivan has a social stigma that crossovers do not.
The large SUV sales dip is also telling, but half a percent may be just normal sales or seasonal fluctuation.
And, the 50% increase in sales for crossovers doesn’t delineate between compact, mid-size or full-size crossovers. Some crossovers get no better fuel economy than “SUV”s.
The real telling stat is the fact that Americans drove 11 billion fewer miles in March. Oil companies I’m sure don’t like hearing that. Conservatively call it 27 miles per gallon, at $4.00 a gallon, and that adds up to over $1.6 billion in lost gas revenue…. for ONE month!
06/01, 8:42 PM
posted by:
gogogodzilla
The US demand for small, fuel-efficient cars is increasing greatly… and US automakers have no new small, fuel-efficient cars to sell.
(well, if you exclude the Saturn Astra… but that’s a rebadged Opel – and not all that fuel-efficient)