As Gas Prices Go Down, Hummer Sales Go Up

Large SUVs and trucks are seeing renewed popularity thanks, in part, to lower gas prices.

November 14, 2014

WASHINGTON – In an article this week, the Washington Post looked at a side-effect of the recent decline in gas prices: sales of mega-SUVs like Hummers are on the rise. The article cites auto analysts who say that over the last month consumers have shown a fresh interest in large SUVs like Hummers, Lincoln Navigators and Ford Explorers. The type of vehicles whose sales have languished over the last few years of high gas prices.

The Post writes, “as oil prices hit a three-year low, Americans are starting to see price changes that could ultimately influence everything from their grocery shopping to their heating bills to their travel. The lower prices — should they be sustained, as expected, for the next few months — have the potential to nudge the U.S. further away from its dreary post-recession mindset, leaving instead a nation with more affordable air and road transportation options, higher consumer confidence, and yes, a few more gas guzzlers driving around.”

While many consumers remain cautious about the “bonus money” derived from lower gas prices, car shoppers in particular have already shown signs of being influenced by the cheaper oil prices. The share of “trucks” — including pick-ups, SUVs and crossovers — among total vehicles sold was at 53.6% in October, a slight increase from 53.5% the mopnth before, and the best sustained two-month stretch since 2005.

And according to Autotrader.com, interest in Hummer H1s rose 11% last month, making it the fastest-growing older model among all vehicles.

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