High Fuel Costs Fueling Purchase Decisions

May 2, 2004 – Vol.9 No.6

HIGH FUEL COSTS FUELING PURCHASE DECISIONS.

With gasoline prices expected to stay high, fuel-efficient hybrid technology is available today when we need it. Hybrids fit into our existing fueling infrastructure and promise room for growth with the obvious possibility of renewable-fueled hybrids. A biodiesel or bioethanol fueled hybrid could be a very green vehicle.

And if later hydrogen and fuel cell technology is improved and costs reduced, the internal combustion engine in hybrids could be replaced with a fuel cell.

For now hybrids offer the best fuel economy available and consumers are beginning to agree as gasoline prices crawl higher.

In a monthly study from Harris Interactive and Kelly Blue Book (KBB) 17 percent of in-market car buyers (those ready to buy a vehicle in the next year) have changed their plans as to which vehicle to buy due to high gasoline prices, and 21 percent are strongly considering vehicles that they had not considered before.

Additionally another 15 percent said they would strongly consider more efficient vehicles if gas prices went up another 25 cents per gallon.

And of those ready to sign on the dotted line within a week, 26 percent said gas prices have already affected their purchase decision.

The disappointing side of the survey said that, on average, most in-market buyers wouldn’t change their vehicle choice unless gas prices rose yet another 65 cents per gallon.

The results also brought Kelly Blue Book to conclude that the sales of SUVs overall won’t drop, but buyers will just switch to smaller versions and hybrids as they come into the market during the next few months.

Kelly Blue Book has been providing market information about cars since 1926. Harris Interactive is best known for its political polling. Visit KBB at http://www.kbb.com/ , Harris Interactive at http://www.harrisinteractive.com/