Gas prices making anyone reconsider?

[altona]

Yes, that is true. Most weeks it averages out to abot .5% drop from previous week. In terms of $ amount that is approximately $200 ON THE WHOLESALE SIDE of the equation. That is not always a direct match to any retail price drop, if any, especially if the dealer is low on good low miles used inventory.

This "fuel crisis" will surely accelerate some drop in bigger more fuel hungry vehicles in the near future.

 

[Stbentoak]

From Wall Street Journal a few months ago.....

The Federal Reserve on Thursday reported that the net worth of U.S. households was $134 trillion in the second quarter—up from $128.4 trillion in the first quarter. That figure stood at $110 trillion In the fourth quarter of 2019, before the pandemic took hold. Including nonprofits, accumulated household net worth in the second quarter hit a record $141.7 trillion.



Much of that increase in wealth came about from gains in stock prices and the value of people’s homes, but what may be most notable is how much more money people have lying around in cash. The amount of cash and cash equivalents on household balance sheets rose to $16.5 trillion in the second quarter, from $16.3 trillion in the first quarter and $12.7 trillion at the end of 2019.
It is a reflection of both how much people reduced spending, particularly in the early stages of the pandemic, and the substantial relief that the federal government has provided. Chances are that cash has continued to build up since the end of June—the latest data from the Commerce Department show that in July people hung on to 9.6% of their after-tax income, which compares with an average personal saving rate of 7.4% in the five years ended 2019.

 

[Quark]

Rising inflation and a spike in energy prices are exactly the reasons the Fed would raise interest rates.

Their reluctance to get ahead of this is framed in the word "transitory". What makes you think they've had a change of mind?

 

[firsttimetahoe]

Rising inflation and a spike in energy prices are exactly the reasons the Fed would raise interest rates.

Do you know how bad the shape of this economy is for a lot of people in the lower class? Raising rates when you have near record inflation is going to impact a lot of people very badly. They will not be able to refinance their debt. People will default on their debt. We haven't seen the worst of it.

 

[firsttimetahoe]

It is a reflection of both how much people reduced spending, particularly in the early stages of the pandemic, and the substantial relief that the federal government has provided. Chances are that cash has continued to build up since the end of June—the latest data from the Commerce Department show that in July people hung on to 9.6% of their after-tax income, which compares with an average personal saving rate of 7.4% in the five years ended 2019.

People were spending like crazy in the beginning of the pandemic. Everyone was doing home renovations. Everyone I knew. People have slowed down their spending because their is now a huge shortage on goods. And prices have gone up significantly.

 

[Polo08816]

Their reluctance to get ahead of this is framed in the word "transitory". What makes you think they've had a change of mind?

Haven't they moved away from considering this transitory? If their assumptions have changed, would you expect their future actions to change as well?

 

[Polo08816]

Do you know how bad the shape of this economy is for a lot of people in the lower class? Raising rates when you have near record inflation is going to impact a lot of people very badly. They will not be able to refinance their debt. People will default on their debt. We haven't seen the worst of it.

The Fed's mandate is to balance inflation with employment. We're at full employment. In fact, we have a labor shortage. The economy (and by economy, I don't mean the stock market and equities that the upper middle class and above are heavily invested in) can endure significant interest rate increases.

 

[Baja_Bob]

I paid $4.98 for my 93 octane yesterday, and I know that this price is relatively low compared to other parts of this country. I'm fortunate in that if gas prices get really out of control, I'll drive my Honda Fit more than my truck. But, I'm never going to get rid of my truck, just because of high gas prices. It is just too much fun to drive the truck.

I agree, my yukon only gets driven on the weekends, I also have a 21 bronco sport 1.5 3cyl. that I drive to work daily, bought it for the gas mileage. It averages 28-30mpg.
Still don't want to pay $5.00+ for gas in any vehicle.

 

[firsttimetahoe]

Yeah, that $1200 to people earning less than $30K a year really was lovely, probably floated them for 25 days with the cost of rent alone... You do know that the majority of states living off the gov't welfare are red states, right?? Sorry, no politics, I know...

If you earn less than $30k a year why are you buying a Tahoe/Yukon/Escalade?

 

[Pertzbro]

This is the problem. Printed too much, too quickly.

M1

View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other checkable deposits.

fred.stlouisfed.org

 

[pwtr02ss]

To answer the question, no. I'm not going to sell or replace it with something smaller/more efficient (any of them). I will complain about it. I think its dumb. Does it change my lifestyle, no. I don't like throwing money away on interest, nor do I like throwing money away at artificially increased goods. Groceries, gas, everything really.

 

[UsualSuspect]

I am willing to pay the price for my comfort. None of my current vehicles, which range from 8 years to 15 years old get more than 18 MPG now. The 3.0 will exceed what the current fuel mileage is, so buying a new one will actually save me some cash.

 

[DenaliCountry]

If you earn less than $30k a year why are you buying a Tahoe/Yukon/Escalade?

What? I was responding to the idea that people have been sitting home collecting gov't checks, hardly the case... Not sure how that equates to me somehow making $30K a year LOL.

 

[soulsea]

Posts deleted, warnings handed out.

Next member that mentions politics on this thread takes a holiday from the forum.

If you can't discuss this issue without bringing politics into it then don't discuss it.

If you guys can't help yourselves we'll just lock the thread to save you from yourselves.

 

[Gibby13]

I'll run the # again in case we don't remember them... Current day...

6.2 around town 15 mpg with Premium at 4.89 25 Gal = 375 miles@ 125.00 .33 a mile

3.0 around town 25 mpg with Diesel at 4.79 25 Gal = 625 miles@ 120.00 .19 a mile

And for the 5.3 Crowd 17 MPG around town with RUL @4.29 25 gal = 425 miles@ 117.00 .25 a mile

Not to mention if ( and a big if..) shortages would come to pass. There won't be any lines for Diesel and they won't be out....

Thats why I'm an all-diesel fleet...

I like this, thanks.

He have the 6.2 in our 2021 and getting the 3.0 in our 2022

 

[R32driver]

I agree, my yukon only gets driven on the weekends, I also have a 21 bronco sport 1.5 3cyl. that I drive to work daily, bought it for the gas mileage. It averages 28-30mpg.
Still don't want to pay $5.00+ for gas in any vehicle.

I saw low grade at $5.60 a gallon this morning and diesel was $6.20 here in the PNW. I've noticed diesel is quite a bit more $$ than gas at every station around. Didn't even want to see what they were asking for premium as I rolled by in the v8 audi that needs premium and gets horrible mileage

 

[SSGUNNER]

If you earn less than $30k a year why are you buying a Tahoe/Yukon/Escalade

What’s wrong with that? Lol people like to live the American dream and most are saying YOLO!!! People in that category, you’d be surprised at some of the nice crap they have. Millennials these days seem to live at home with mommy and daddy, bring in main squeeze and never pay a single dime in rent…

 

[Baja_Bob]

The Big 3 are promising to be all electric soon, the battery technology is still years behind for me to stop using ICE cars and trucks. I don't see any of these electric vehicles making it over 100K miles or more like todays trucks, no matter how much maintenance you do to them.

 

[Polo08816]

The Big 3 are promising to be all electric soon, the battery technology is still years behind for me to stop using ICE cars and trucks. I don't see any of these electric vehicles making it over 100K miles or more like todays trucks, no matter how much maintenance you do to them.

And that's "if" you can do maintenance on them.

Unless EVs are able to get 800+ miles of range, I'm not going to consider them a replacement for ICE vehicles. The cost difference between charging at home and on the road is too significant.

 

[George B]

The Big 3 are promising to be all electric soon, the battery technology is still years behind for me to stop using ICE cars and trucks. I don't see any of these electric vehicles making it over 100K miles or more like todays trucks, no matter how much maintenance you do to them.

Making overtures and virtue signaling doesn’t get it done. They very well could switch course as soon as there is a change in government control. General Motors didn’t become Greenpeace Motors overnight. They are following the dollars and looking for a kickback. Nothing more.