Fuel prices greatly altering American driving habits, purchasing decisions
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.
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