The truth about high gas prices is once people are convinced it cost too much they step up conservation and in turn buying behavior changes. Consumer demographics point towards orthodox luxury features across all car platforms regardless of fuel economy. These features jack car prices and insurance cost. The buzz word “less is more” covers everything now from food to cars. But, is it nothing more than a marketing pitch? Where is the real savings when the base price of an economy car is now upwards of 20K?
Photo: Minneapolis, MN May 28, 2011
A friend of mine from high school drove a new 1975 Gremlin. One of the fugliest cars ever made. Where endearing VW Beetles had ceased to develop technology, the Gremlin at the very least was heated. Still, fuel economy was the only feature that truly sold both cars. The frugal package is a thing of the past in todays car market. But, as the pendulum swings buyer beware. The demand for economy cars has waxed and waned for seven decades after WWII. Why do you think this time is any different? When every new car becomes luxury equipped, a saturation point occurs and the used car market swells. Start to look for used bargain right now on used economy cars from the past. These cars are great for city use and young people starting out in the job market.
Note how oil profits are up and the cost of gas has just fallen. If you don’t recognize market manipulation it’s time to get your head out of the sand. Energy is our master. Master your own. Use some now. Ride a bicycle more and drive a car less.