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Gas Prices Rise, So Do SUV Sales.

High gas prices are not scaring drivers as much as has been expected.

auto warrantiesThe so called experts have been expecting hybrids and smaller cars to knock SUVs off the throne ever since gas hit $3.00 a gallon.  However, it is going to take more than that to dethrone the current rulers of the rode.  After all, they are very big.  

The SUV is alive and well today.  In fact, it seems to be thriving.  For example, Escalade sales were up 127% last month.  These statistics do not show a nation of drivers fleeing from big vehicles into the arms of the hybrids.  

This is a very different situation from 25 years ago.  During the late 70’s early 80’s gas prices  rose dramatically and there were shortages.  This propelled people towards more fuel efficient cars.  Apparently, today’s motorists aren’t as easily scared.  

This can be attributed to a couple of reasons.  First, the average household spends about half as much on gas, based on percentage of income, than in 1981.  Basically, there are plenty of people out there with the means to pay for a lot of gas.  Second, we have become a nation of SUV and truck drivers.  It is going to take more than $3.00 a gallon to change this.  Now, the experts are saying it will take $4.00 a gallon for a prolonged period of time to bring change, but as we are finding out, they have been wrong before.  

The reign of the hybrids might have to wait a little while longer.  For now, it is still long live the SUV.

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Posted on Thursday, May 18th, 2006 at 11:27 pm In Auto Warranty  


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