4 bucks
At $3 a gallon, Americans just grin and bear it, suck it up and, while complaining profusely, keep driving like crazy. At $4, it is a world transformed. Americans become rational creatures. Mass transit ridership is at a 50-year high. Driving is down 4 percent. (Any U.S. decline is something close to a miracle.) Hybrids and compacts are flying off the lots. SUV sales are in free fall.
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Some things, like renal physiology, are difficult. Some things, like Arab-Israeli peace, are impossible. And some things are preternaturally simple. You want more fuel-efficient cars? Don’t regulate. Don’t mandate. Don’t scold. Don’t appeal to the better angels of our nature. Do one thing: Hike the cost of gas until you find the price point.
(Source)
The whole industry prices for SUVs and trucks has declined nearly 25 percent, which is approximately four times the normal depreciation expected over this period and well in excess of the depreciation expected over a full year.”
Last week was a busy week for the dealership because of the deals the stores have going on – 0 percent interest for 72 months vs. the typical 6.9 percent interest. These deals are just to get rid of SUVs.
BUT hybrids are in high demand and that is good for the new direction we need to take in respect to fuel efficiency