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It's not strange that cheaper oil increases miles driven and other transient features, but so quickly impacting the sale of larger crossovers and other gas-heav

It's not strange that cheaper oil increases miles driven and other transient features, but so quickly impacting the sale of larger crossovers and other gas-heavy vehicles? It seems likely (or at least plausible) that, within 1 to 3 years or less, gas prices could easily spike back up to where they were before. Do people really think such low prices are the "new normal" or is there other factors at play?

delecti 12y ago
Everybody is ignorant about something. Many are ignorant about the political issues that factor into their gas prices. I would be very surprised if people aren't expecting this to be the new normal.
transfire 12y ago
Yea its strange, b/c its propaganda. People had barely realized the prices were going down before they started saturating the news with "huge demand for trucks and SUV" stories. Its bullocks. They put that fake news out in order to encourage people to go do exactly that.
mikeash 12y ago
People have trouble planning beyond the short term. For most people buying a car, if they think about fuel costs at all, it'll be in terms of what they last paid to fill up their tank, and what they saw on gas station signs as they drove to the dealership. These same people will be evaluating the price in terms of the monthly payments, and evaluating options along the lines of, "It's only $20/month, I might as well." Be prepared for a glut of cheap used SUVs on the market in a few years.
lotsofmangos 12y ago
I would be fairly amazed if it doesn't spike by the end of the summer. The Saudis may be able to pump a lot of oil, but the delivery chain has limits. However the market has been buying less oil recently since the combination of financial crisis and high prices, so there currently is some slack. Once that gets filled and the price starts going up again it will probably spike immediately as everyone simultaneously thinks it is their last chance to buy low.

delecti 12y ago

Everybody is ignorant about something. Many are ignorant about the political issues that factor into their gas prices. I would be very surprised if people aren't expecting this to be the new normal.

transfire 12y ago

Yea its strange, b/c its propaganda. People had barely realized the prices were going down before they started saturating the news with "huge demand for trucks and SUV" stories. Its bullocks. They put that fake news out in order to encourage people to go do exactly that.

mikeash 12y ago

People have trouble planning beyond the short term. For most people buying a car, if they think about fuel costs at all, it'll be in terms of what they last paid to fill up their tank, and what they saw on gas station signs as they drove to the dealership. These same people will be evaluating the price in terms of the monthly payments, and evaluating options along the lines of, "It's only $20/month, I might as well." Be prepared for a glut of cheap used SUVs on the market in a few years.

lotsofmangos 12y ago

I would be fairly amazed if it doesn't spike by the end of the summer. The Saudis may be able to pump a lot of oil, but the delivery chain has limits. However the market has been buying less oil recently since the combination of financial crisis and high prices, so there currently is some slack. Once that gets filled and the price starts going up again it will probably spike immediately as everyone simultaneously thinks it is their last chance to buy low.