A recent J.D. Power and Associates report showed rising gas prices are starting to shift the sales of compact trucks and SUVs sold on the market today. Consumers are starting to trade in their large, full-sized SUVs and trucks for smaller, more fuel-efficient versions.
"We're seeing a broad, long-term -- but gradual -- movement to smaller vehicles," says Tom Libby, senior director of industry analysis at the Power Information Network (PIN). "For example, during periods of high gas prices over the past two years, we've seen movement from larger to smaller SUVs. However, the total SUV pie remains largely intact."
Libby also went on to explain that buyers are become more loyal to smaller vehicles with four-cylinder engines, with sales increasing 31.8 percent at the beginning of the year. High gas prices and vehicle demand are making the four-cylinder engines more popular amongst commuters.
Hybrid sales have also jumped. Crossover sales haven?t moved much in the past few months but are excepted to climb.
J.D. Power also reports that gasoline prices have gone up more than then 20 cent in the last few weeks, setting a national record of $3.10 a gallon.
I remember when the price for a gallon of gas was $1.10 when I started driving. My little ?87 Toyota pickup took only thirteen bucks to fill. That would get me to school, to my part-time job, and home for the week and when everything was located within a 10-mile radius.
Today I drive more than 160 miles a day and I have to use premium in my four-cylinder MINI Cooper S. (The Toyota truck was put out to pasture a few years ago.) Premium gas averages between $3.60 to $3.90 in California. With my daily commute, I have to fill up every other day, spending anywhere between $38-$45 bucks each time I go to the pump.
The gas price increases might be hurting the sale of full-size SUVs and trucks, but its hurting everyone in the pocket no matter what you drive.
Source: J.D. Power and Associate press-release