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Fuel Prices Going Up

October 22, 2009 Automotive Topics No Comments

Fuel Prices Are Moving Up and Fuel Economy Is Moving Up

The fact that gas prices are going up is probably something that you have been noticing lately.  Certainly the current price of gas is under $3.00 per gallon.  This is certainly a lot a lot better than $4 per gallon last year.

Auto Implications

Car and truck purchase decisions are made on the basis of many factors and fuel price is one of them.  If you need a pickup truck or SUV then that is what you need.  If you need a simple car to get around with then lots of miles per gallon, and the associated lower total operational expense, is precisely what you are looking to achieve.

Vehicle Purchases

Car and truck sales have, at least in the years leading up to $4 per gallon gas, represented about a 50-50 share of sales between them.  When gas prices peaked truck and SUV sales dropped and car sales increased.  When gas prices dropped then truck and SUV sales went back up.  This information was on the nightly news and in the newspapers as everyone speculated on how high can fuel prices go.

Fuel Prices Collapse

Fuel prices did start going down, and down and down.  It was an absolute relief not to have to pay so much at the pump.  It was possible to look at the gallons and say “a few months ago I would have paid twice as much.”

Fuel Prices Rise

Fuel prices are going up.  Fuel prices are steadily going up and that has major significance for everyone.  This time increased fuel prices are likely to stay high because the general economic conditions around the world are on the mend so more money will be available to go to the oil producers.

Economic Vehicle Purchase Assessment

VW Jetta DieselIncreased mileage trucks & SUV’s, high mileage cars, hybrid cars-trucks-SUV’s, and electric cars are coming in a big way.  Yes hybrid vehiclesare here right now.  However, the real bulk of these new powertrain vehicles have not hit you dealership yet.

Diesel Power

VW, BMW, and Mercedes have diesel cars that are selling briskly.  It is interesting to note that at the EPA Fuel Mileage site that for the 2010 Jetta TDI the car’s test results are 30 city, 41 highway and 34 combined.  However, in the MPG Estimates from Drivers Like You report 47 MPG.

It is clear that we will all be watching fuel economy numbers very closely when it comes time to get a replacement car or truck.

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