The New York Times reported last week that 2016 was a terrific year for the auto industry: The 17.5 million new vehicles sold set a new record over the 17.4 million sold in 2015. Reporter Bill Vlasic wrote that, “Most major automakers are making big profits these days, as consumers replace aging cars and trucks with new models, loaded with technology, that last year sold for an average sticker price above $35,000.”
He did add that the auto industry has endured a “sustained slump in sales of small and midsize cars, which has offset the increased demand for trucks and S.U.V.s.”
How long do you think that trend toward larger vehicles will last?
The 2017 Fuel Price Outlook we issued last week forecasted a significant increase in gasoline prices this year. We identified the key trends driving prices higher and projected that motorists in Los Angeles, Seattle, Chicago, Philadelphia, Washington D.C. and New York are highly likely to see gas prices jump well above $3/gal. mark, especially in May and June when retail prices often peak. Many other cities in the traditionally ‘high gas tax’ states will certainly see their prices rise to similar levels, too.
So, here are some questions for you:
- Do your views align with the GasBuddy Fuel Price Outlook for 2017?
- Are you seriously considering replacing your current vehicle this year for a new one?
- …and are you ready to spend in the $35K range?
- If the higher gas prices follow the trajectory GasBuddy has articulated, does that encourage you to look for a vehicle that’s more fuel-efficient and buy it now?
- …or does the prospect of spending more on gas make you want to get another year out of your current vehicle so you could save more for the next one?
Let us know in the comments below!