Gas prices are on the rise again. The average price is $2.67/gallon. Yes it’s a lot lower than last year’s peak of $4.11/gallon. Last year I noticed a huge uptick in people riding public transit. It’s come way down this year and I haven’t seen an uptick yet.
But how will rising gas prices affect you? Will you change your driving habits? Or did you change your driving habits last summer and never reverted back?
Last year I said I wasn’t changing my driving habits really. My DH drives to work/school and back. We take the car out as needed on the weekends and went on driving trips instead of flying. Nothing out of the ordinary. In fact, when people were buying newer, fuel efficient cars, we refused and stuck with our older cars.
However, I will admit that this could be a great year to buy a newer, fuel efficient car. According to Aryn from SoundMoneyMatters, here are some details with the fuel efficiency bill. This tax credit combined with dealers just trying to give away cars, it makes sense if you were going to replace your car soon to do it this year.
Personally? I have two older cars that get pretty decent gas mileage. The Corolla 30 mpg city and Focus 27 mpg city. They have been well maintained and run well. If we need a bigger car we can just rent one. So why would we buy a newer model of what we have for say $12k? We’re better off running our cars into the ground.
But with gas on the rise should we change our strategy? What will you do with the rise in gas prices?
11 responses so far ↓
1 amy // Jun 25, 2009 at 12:32 pm
Rising gas prices helped us decide to move closer to work (30 mile round trip commute is now 3 miles) and replace JK’s 1993 Ford Explorer with a 2008 Subaru Impreza.
2 LAL // Jun 25, 2009 at 1:12 pm
We bought and are happy with where we live. Not far at all, 5 and 8 miles. And why should we get newer cars for a little better gas mileage?
3 amy // Jun 25, 2009 at 2:07 pm
LAL, the Ford Expolorer was on it’s last legs, and with a 30-mile commute at 15 mpg, it’s gas bill was about $400 a month. We need a 4WD or AWD car as we live in Alaska, so getting rid of the old gas-guzzling clunker was a relief, and replacing it with an AWD Subaru was a no-brainer. Now we drive fewer miles with much better mileage and no fears of an imminent breakdown. Whew!
4 R. May // Jun 25, 2009 at 2:11 pm
Exactly! Why on earth do people buy new cars when the old one works fine?
An aquaintance is bemoaning the fact that her ac is broke and the dealer (she refuses to go elsewhere) wants 2500 to repair that and a few other minor things. Nothing that makes her car unsafe. Unpleasant maybe, but thats it. So she whien that she cannot afford said repair. Then she goes well I guess I have to buy a new car.
And that logic is why the economy stinks.
5 LAL // Jun 25, 2009 at 2:18 pm
Well R. May, I might sell her car and buy an old car that has a working AC personally. I wouldn’t buy a brand new car but I might indulge and get a newer car.
Amy, did you look at a new subaru? Will the incentives from the stimulus package you could get up to $8k back for your SUV to AWD subie for buying a new car?
I think the moving closer to work is the biggest factor often. You can dump a car and instead save on repairs, insurance, gas, etc.
6 R. May // Jun 25, 2009 at 4:37 pm
If she can’t afford a 2500 repair she can’t afford a new car.
She’s willing to take out several thousands of dollars in a car loan which she will be paying on for years. That’s some really expensive ac.
7 LAL // Jun 25, 2009 at 8:56 pm
For $2500 you can get a car with a working a/c instead of spending it on the car she has. You can get beaters for $1k that will run with a/c for awhile.
8 R. May // Jun 26, 2009 at 8:53 am
True – but the point is she still doesn’t have 2500 dollars. And her car isn’t that old or have an obscene amoutn of miles on it. Any beater is going to be in worse condition then her current car.
9 LAL // Jun 26, 2009 at 10:24 pm
Why’d the A/C break if it’s not an old car? How old and how many miles?
10 R. May // Jun 29, 2009 at 8:37 am
I’m not sure exactly what the issue is with the ac other then it’s not working.
I believe it’s an 03 and has somewhere around 80 thou on it. She overpaid for it too.
11 LAL // Jun 30, 2009 at 11:47 pm
Ouch on it being an 2003. I have a 1999 and it’s still great.
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