With low gasoline prices, more consumers are buying larger vehicles. The trend is leading even owners of hybrids and electric vehicles to “defect” (in the New York Times’ words), to sport utility vehicles and other gas-powered models.
What the future may hold
If you’re shopping for your next car, what does this mean for you? Will inventory of fuel-efficient and electric vehicles (known as EVs) shrink? Experts speculate that the green auto industry isn’t going away. However, with both fuel costs and hybrid sales trending down, automakers are in an awkward spot. They face the pressure of churning out popular SUVs to meet the demands of today’s drivers, while at the same time planning for a rapidly approaching future expected to be dominated by EVs and car sharing.
For the near future, automakers have little choice but to keep promoting SUVs and trucks to maintain strong sales in the era of cheap gas and a preference for larger vehicles. Yet they’ll also develop more advanced EV models (like the Tesla Model 3, VW’s electric microbus, and Chrysler’s plugin minivan) because, well, this is where the market’s going.
Beyond dollars and cents
Buying a car is a complex emotional and financial process, and a big financial decision. Before you go to the dealership, it pays to get acquainted with the latest market trends and pricing. If you do the research, you will find the price, technology and vehicle that suits your needs.
Resources: Time, Forbes
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