I ran into a Navy Lieutenant today whose family runs a string of car dealerships in northern Virginia. As soon as he mentioned this, I asked him something I'd been dying to ask for a few weeks and now finally had the chance:
"When gas prices were shooting through the roof, and analysts were predicting that crude would fly through the $200 marker, there were constant reports of people dumping their SUVs for anything they could, and stories about how dealers couldn't get rid of them....so now that gasoline has fallen by more than a dollar and a half per gallon, and analysts are making equally wild and irresponsible prognostications about how low the price of a barrel will soon go, are people now clamoring to buy SUVs?"
I could tell from his immediate reaction that a) he knew exactly where I was going with the question before I even finished asking, and b) it wasn't the first time he'd heard it.
"Absolutely," he replied. "We're selling SUVs at just as fast a rate as we ever have. In fact, if you look at some of the markdowns and the deals that have carried over, we've had some of our most brisk SUV sales ever in the past couple weeks."
Wow. I bought my car in 2004 (a 2001 model) and plan to hang onto it for several more years...literally, until it won't *go* any more. Can I be the only one who thinks that way?
What are all these new SUV owners going to do the next time gas spikes up to $4/gallon?