Results by Google
Home Automotive 

Story

Study: Gas Price Hike To Affect Car Buyers

Gas Prices Could Hit $4 Per Gallon This Summer

Tuesday, April 8, 2008 – updated: 9:35 am PDT April 8, 2008

An increasing number of prospective car buyers say their purchasing will continue to change significantly if gas prices continue to rise, a new study has found.

According to a Kelley Blue Book Marketing Research study of 1,100 in-market new-vehicle shoppers, nearly 60 percent of vehicle shoppers said gas prices have forced them to change their minds or strongly influence their purchase decisions. Another 43 percent indicated they would seriously consider a more fuel-efficient vehicle if gas prices were to swell an additional 25 cents above current levels.

Both measures are up 11 points from the previous month’s Kelley Blue Book Marketing Research study.

"The cost of gasoline is continually hitting new record highs, forcing consumers to reevaluate their spending," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "This study shows just how many are willing to make better economic choices in order to save money and increase fuel efficiency. More fuel efficient models are available on the market and now consumers have that choice."

Average gas prices jumped 30 cents in March from $2.97 to $3.27. While the vast majority of shoppers are indicating an alteration in their purchasing behaviors, only 25 percent still have no intentions in changing their behaviors, compared to 34 percent in February.

The results also showed consumers considerably more interested in all the various alternative fuel technologies for fuel economy benefits and less for environmental reasons.

The survey results were released the same day the Energy Department expected gas prices reach as high as $4 per gallon this summer with an average monthly gas price to peak at $3.60 per gallon, 10 cents higher than its previous forecast.

"It is important to note ... that even if the national average monthly gasoline price peaks around $3.60 per gallon this summer, it is possible that prices at some point will cross the $4 per gallon threshold," the department's Energy Information Administration said.

Prices at such lofty levels will make many Americans think twice about hitting the road this summer, the Energy Department said Tuesday.

"The combination of rising world oil consumption and low surplus production capacity is putting upward pressure on oil prices," the EIA report said. "The flow of investment money into commodities has contributed to crude oil price volatility."

The EIA acknowledged "significant uncertainty" in its oil price projections, noting that unexpected supply disruptions due to conflict in oil-producing nations, unusual weather or refinery outages could send prices spiraling sharply higher.

"Prices can fall as rapidly under a different set of circumstances, such as easing of geopolitical tensions or further weakening of U.S. and world economic growth," the EIA's report said.

Additional Resources:

More Headlines

Current Road Conditions

Don’t run into road work or traffic congestion anymore. Check out what road conditions look like before you head out. Full Story ››


Construction Projects

Before you head out, check out what construction projects are underway. Don’t get stuck during a busy work zone. Click her for more Full Story ››.


Gas Prices

Gas prices
Keep tabs on the latest news, and calculate the cost of a trip in our special section. Full Story ››


Gasoline Tips

The surest way you can improve your fuel cost problem is to change your motoring habits. We’ve provided a list of 30 effective methods of doing so... no need to buy expensive add-on equipment. Full Story ››


Free Classifieds


Shop At The Online Mall

Hot Deals

Reno Toyota
Just in time for the holidays, buy any car from Reno Toyota and receive a $100 gift card for the summit. Plus get rates as low as 0% or up to $3,500 in customer cash.
Current New Vehicle Specials

Champion Chevrolet
It’s Champion’s 8th Countdown Sale of the Decade and your record-setting number-one GM dealer is counting down each sale until we hit our goal of selling 3,000 vehicles in 2008. Take advantage of our giant GM incentives, big discounts and high trade-ins.
Current Specials