Well, it really can be a coin flip as to who is hurt worst by the big rise and oil pushing $150 a barrel today. It’s a shame on one hand, but being a “glass half-full” guy, I can see the silver lining that I’m actually enjoying…
It Is Not Cheap
Well, “enjoying” might be overkill, but there ARE some things that will be better off with gas needing to be purchased with a bank loan. Combine that with J.D. Power & Associates stating that overall auto sales are down about 8 percent so far this year and large cars/trucks sales dipping an outrageous 23 percent and we’ve got an epidemic, or is it an opportunity?
There’s no strange puzzle as to why new cars aren’t selling, people have a strong inclination that gas isn’t going to be going down anytime soon. At the same time, we realize that something better is just over the horizon. Whether that be a change in the government come election time in the US, or whether it be the car makers kicking out vehicles that don’t guzzle so fast.
I’m not a political pundit by any means, but I feel there is something to be said for the candidates getting grilled about the gas prices now. You’d think they’d need to make a change when they get their place in the Oval Office, but stranger things have happened.
On the other side though, people aren’t buying because they know that car makers are at the cusp of change now. All vehicles are going to need to get 35mpg by 2020 as per the CAFE standard Congress passed last December. This isn’t going to START in 2019, as with any business, they’re building and researching now. People know that the cars that are being pushed out now are end-of-life models that are going to need redesign to meet what Congress is pushing.
Looking To Capitalize on High Gas Prices
Several companies are chomping at the bit and being proactive on this now. They’re taking advantage of the big companies being so big and getting in when they see the opening. As with any entrepreneur, these companies see a hole that needs filling. Jumping in now is going to turn a pretty penny for them before the big manufacturers can work this change into their environment.
Take the Aptera for example. They’re saying this thing can potentially get 300mpg. That’s leaps and bounds above what anyone else has talked about in the past and certainly will get some good ink from around the world if it is possible. Here’s a video about it:
You Can Probably Get a Steal Now
On the flip side and “glass-half-full” mentality though, if you’re in the market for a big rig now, there may not be a better time to jump on it. Dealerships are piling up cars on their lots and not being able to push them now. If you just can’t fight off that new car bug and need one now, consider some of these models that are probably dirt cheap now:
The big V-8 engine Jeep Commander caught on with its catchy phrase of “got a Hemi”. But now the catchy “got a Hemi” phrase has run its lifeline and people are realizing what that really means: “Got a Deep Pocket Book”? The beastly car has dropped 48 percent in sales this year and tops the charts. 13mpg just isn’t going to cut it if you’re on a budget, but like I said, if you’ve got the extra cash, you could probably walk away with a pretty sweet deal right now.
Next on the chopping block is the Nissan Titan. It never really was able to get up to snuff with US rides from Dodge, GMC, and Ford and the gas crunch has made it even tougher for the foreigner and sales are off 45 percent for the year. It is steep, but that’s not to say that the big dogs aren’t hurting as well – Dodge Ram sales are down 27 percent, Chevy Silverado sales down 26 percent, and Ford F series sales are looking good in comparison down just 19 percent.
Hummer sales aren’t actually as bad as I would have thought, I would guess they’d be topping (or bottoming) the list so far this year being down just 36 percent. It’s not rocket science why though. They are built on the same frame as the Chevy Suburban, but offer far less room. This ride was destined to failure I think because it only offered uniqueness. I rarely see one pulling anything and aesthetics and Hollywood keep this one alive. It doesn’t have the space capacities needed, nor the fan base to keep it flowing. Unless they completely overhaul it, I think it’s reached the end of the line.
Chrysler’s sweet deal to lock in $2.99 gas seemed to do the opposite of what they were trying to push. The beefy Chrysler 300 sales are down 31 percent.
Know Where Your Money Goes
Yes, I drive a Suburban and yes it costs me $100+ to fill it up, but it’s not killing me yet. I have a second car that I drive that sees about 10 miles a week. I live very close to my office building; so I offset the big ride gas prices with realizing that I only drive one car. Per month I’m putting in $200-ish for gas. Is it killing me? No. I can afford it now. I budget my money properly and understand that gas isn’t going to be coming down till it has some competition.
People that are complaining about the prices and not doing anything about it (budgeting properly) are going to be the ones that are hurt most by it. Big business isn’t going to slow. We’re all ants in the whole scheme of things and big tires run over ants pretty easily. Roll with the punches and know what is coming. Budget properly and don’t buy any big expenses until you can offset this cost.
Get a raise, don’t buy that flat screen tv, hold off on that vacation for another year. There are plenty of ways to pay for the gas if you analyze what you’re spending now and where you can cut back.