As Gas Prices Fall, So Does Fuel Economy: Consumers Flock To Trucks When They See Low Prices At The Pump, from International Business Times.
It might seem counterintuitive to buy a gas-guzzling vehicle that will last for years based on a temporary drop in gas prices. But consumers have proven time and again they’re willing to pay more for gasoline over the life of the cars they buy if prices are low on the day they visit the dealership.
With U.S. gas prices at a five-year low, the latest data from the University of Michigan’s Transportation Research Institute says the average fuel economy of a new vehicle purchased in December was about 3 percent lower than the all-time peak of 25.8 miles per gallon, hit in August.
“These recent reductions likely reflect the large and continuing decreases in the price of gasoline,” Michael Sivak and Brandon Schoettle, who monitor U.S. fuel economy averages for the institute, wrote in an email Tuesday announcing the latest data.
Photo Credit: Reuters/Rick Wilking