Maybe you’ve noticed, but gas prices are going up again.
That’s bad news for drivers, automakers, and car dealers, but could be good for people in the market for a new car.
Low prices over the last couple of years have driven sales of trucks and SUVs while stifling sales of sedans and compact cars. If you’re one of the people who recently bought a big SUV, you might regret your choice once filling up the tank starts draining Benjamins from your bank account.
But there could be a great deal on a gas-sipper in your near future.
According to GasBuddy.com, prices are up about 3.7 cents per gallon over last week, 11.4 cents over last month, and 21.9 cents over last year. Why are prices climbing, though? Supplies have been high this year, especially with the U.S. pumping out record inventories. Other countries, such as Russia and the members of OPEC, have spent this year producing billions of barrels of oil, which has kept prices relatively low all year.
Even the traditional summer peak of gas prices wasn’t that big of a deal, making road trips an affordable surprise for millions of Americans. It’s a surprise many of us took advantage of, which might explain the recent rise in prices.
AAA market analysts say refinery maintenance and dropping inventory with a booming demand will likely continue to push gas prices higher.
Meanwhile, there’s a backlog of sedans on dealer lots that can be had for bargain prices. But for how long?
USA Today says,
Buyers can expect sweeter deals on small and mid-size cars as automakers try to clear out excess inventory amid declining sales, even as larger vehicles continue to sell well.
For shoppers, it’s a tale of two lots. On one lot are passenger cars, which are flailing as gasoline prices fall. On the other are crossovers, sport-utility vehicles and pickups, which are flourishing as drivers choose roomier designs.
Now that gasoline prices are no longer falling, it’s reasonable to expect that demand for fuel-sipping vehicles will increase again. That means if you want a deal on one, the time to act is probably now.
At what point do gas prices affect the kind of car you purchase?
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