Oil Prices Fall, but Prices Still High at the Pump
The price of a barrel of oil may be going down, but consumers are seeing little relief from the lower oil prices at the gasoline pump. The national average for a price of gas today was $3.96, continuing its weeks-long climb, despite a 10 percent drop in the price of a barrel of oil today.
With gas prices so high, sales of fuel sipping, small cars are increasing. Fortunately, this time, unlike the last time gas prices were this high, the Big 3 are prepared. With new vehicles such as the Chevy Volt, Ford Fusion, and Chrysler Sebring coming out of the manufactures in Detroit, whether or not the price of a barrel of oil continues to fall or if it climbs back up again, once the euphoria over the death of Osama bin Laden has passed.
If your dealership sells a lot of trucks, don’t worry. Trucks will continue to sell, no matter what the oil price, because many people need them for work and simply cannot drive a small car. Just because these customers need trucks though, it doesn’t mean they’re not worried about fuel efficiency. So don’t forget to tell the customers on your lot about the increased fuel efficiency of your new pick-ups, as well as their increased towing capacity, and comfortable seats.
How consumers are thinking about gas prices is changing. Even if they go down in the next few weeks, consumers believe (probably correctly) that the long term trend of the price of oil is up and will continue to be for the foreseeable future. Keep this in mind when you’re on a test drive—fuel efficiency is not a fad, it is the future.