Latest Automotive News

Subscribe in a reader




Auto Price Quote
Get a free auto price
quote from Edmunds!

Gas Prices Cause New Car Shoppers to Cut Spending

Email   small font medium font large font

Google
 
Web AutoNews24h.com
According to the latest kbb.com Marketing Research study of in-market new-car shoppers, the rising cost of gas is severely impacting consumer purchase habits and activities, with a large number of new-car researchers cutting small luxuries out of their budgets entirely.  An overwhelming majority of new-car shoppers say they believe high gas prices are here to stay.

The June 2008 study results reveal that 28 percent of new-car shoppers have stopped going to Starbucks or other coffee houses entirely, and 21 percent indicate they are going less often due to skyrocketing gas prices.  Twenty-eight percent also say they’ve completely stopped buying DVDs/CDs, and 30 percent say they have cut back and are spending less because of high gas prices.  In addition, 27 percent say they have stopped attending sporting events altogether, with an additional 25 percent saying they now attend less often.  Sixty-eight percent of respondents say they are doing less shopping of non-essential retail items, and 60 percent say they eat out less often.  Furthermore, 44 percent of new-car shoppers say they are vacationing less because of the rising cost of gas.  In addition, 73 percent say in the June wave of the study that they believe the change in spending habits to be permanent.


“What was once a frequent occurrence such as the morning trip to Starbucks or taking the family to a ballgame just isn’t as financially feasible when $4-per-gallon gas must also share a place in the budget,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “The fact that nearly three-quarters of new-vehicle shoppers see this as a permanent situation demonstrates the enormous effect that skyrocketing fuel costs can have on not just the auto industry, but the entire American economy.”


Further exemplifying the effect of gas prices on new-vehicle shoppers, sixty-two percent of shoppers say that gas prices have either changed their mind or made them think strongly about vehicles they normally wouldn’t have considered.  Consideration for SUVs, trucks and sports cars is down, while consideration for smaller, more fuel-efficient car segments, like coupes, sedans and hatchbacks are all rising by six points from last month.  SUV consideration has plummeted to 27 percent in June 2008, down 11 points from just nine months ago when it was 38 percent in October 2007.

Receive the latest automotive news by email!

Enter your email address:


Find the new car you want on cars.com

Related news
According to the latest Kelley Blue Book Marketing Research study (www.kbb.com), an increasing number of consumers say their purchasing behavior has shifted and will continue to change significantly ...
According to the latest Kelley Blue Book Marketing Research study, the number of new-car shoppers adjusting their spending habits due to increasing gas prices has reached a record high.  The April 2008 results ...
Increasing gas prices have encouraged consumers to trade-in their SUVs for smaller, more fuel-efficient vehicles, but it is important to examine the big picture before making a final decision.  According to Kelley Blue Book, the ...
Awards Honor Top New-Auto Brands Based on Consumer Perception Data from KBB Marketing Research Amidst the various festivities taking place during the 2008 New York International Auto Show, Kelley Blue Book ...
Ford's new Focus posted an 88 percent increase in retail sales compared with a year ago; highest April sales for Focus since 2000. Retail sales for mid-size sedans also were higher; Ford Fusion up ...
Volkswagen AG on Monday rejected suggestions that former chief executive Ferdinand Piech may have known at an early stage about improper spending involving its employee council. The allegations arose at the trial in Braunschweig ...
TOKYO (AP) _ Mazda reported a 62 per cent drop in April-June profit on Tuesday, but Japan's No. 4 automaker stuck with its forecast for a record profit for the full year ...
For the first time since the launch of the second generation Cayenne, Porsche will be increasing prices. The price changes, effective 1st June 2008, will be between 1.4% and 2.8%, depending on the ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!


Gas Prices Cause New Car Shoppers to Cut Spending
> © 2006-2011 AutoNews24h.com except where otherwise noted