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Gas Price Volatility Could Change How Car Buyers Behave

According to several news agencies, the gas prices could drop during this summer, which would make this the first time it happens in three years.

The good news is that people will be able to afford to fuel their tanks more often, which could have an unintended consequence. Reports show that since gas could be more affordable, people would look at their driving habits and their need for more fuel-efficient or hybrid vehicles under a different.

According to the U.S. Energy Information Administration and its Short Term Energy Outlook report, the gas prices could reach a three-year low that would average $3.63 a gallon.

Some believe that this decline in prices is directly related to the high gasoline inventory levels coupled with a decline in demand for gas due to the increase in the number of hybrid and electric vehicles on the roads.

Automakers have been investing heavily in the business of making economic and small vehicles to keep up with new federal regulations and standards and help drivers to save at the pump. The consequences of a less-volatile gas price across the country could be varied. Consumers could believe they are not in need of purchasing a fuel efficient vehicle at the moment, and carry on with their driving habits and routines without giving much thought to owning a safer, more environmentally safe car. According to some of the reports, the sales of larger vehicles could increase. People who would otherwise believe they would spend too much money at the pump before the gas price drop could be now looking for more powerful vehicles as a result.

Other factors like the recovery of the U.S. housing market could be linked to the truck sales increase.

Some of the vehicles that have been redesigned and fitted with more fuel efficient engines that could see a considerable increase in sales include the GMC Sierra, Chevrolet Silverado, Toyota Tundra and the new Ford F-150.

At this moment, the crossover SUVs and small, midsize cars have accounted for two-thirds of the all new-vehicle sales in the country.

Consumers are still urged to make sure they are aware of all features the vehicles they are looking into purchase are fitted with before settling on one model.  Fuel-efficiency is only one factor they should look into. Safety, cargo capacity, and reliability should also be taken into consideration.

For more on this story and on how the industry may feel the impact of the volatility of gas prices, follow this link to read the full article.

About the Author
The Vachon Law Firm is based in Southern California and focuses exclusively on consumer protection litigation.