Gas prices making anyone reconsider?

[Cryptocap]

I have never purchased a vehicle based on its gas mileage, its always been more about the utility of the vehicle and whether or not it checks those boxes, mileage is usually an afterthought.

Exactly! It’s all about the use of the vehicle, especially when paying this much.

The gas near me has gone up about $1 or so /gallon since last year, so overall $24-30/tank. I guess for those filling 1x per week that could pose a challenge but if you're buying a $70-80K SUV and can't swallow a short term shift in gas prices you might want to consider a lower priced vehicle. Sorry if that comes off as a dick thing to say but in reality, if you're spending $7, 8, 9 or even $1000 a month on a car then you should be prepared to spend a little more at the pump as most cars in these price ranges are not known for their efficiency unless its a tesla (I would never in my wildest spend $1000 a month on a vehicle but many do).

To add on to this right here.. EV’s aside, gas prices go up for everybody. So at a $30 increase 1x per week, is $1,560 a year. Even in a vehicle that gets double the mpg, so only fill up 26 times in a year, it’s a $780 a year increase. Your real increase is the difference between those. So it is around $60-$70 a month more than a vehicle with double the mpg.

 

[R32driver]

The '21 with a 5.3 is nearly the most fuel efficient vehicle we own and consistently drive these days...

 

[firsttimetahoe]

If you can afford to buy a $60, 70 or even $80k Tahoe/Suburban/Denali, should high gas prices really be of concern to you as a reason not to buy and go for a sedan? Not trying to sound rude, but you should have already thought that out knowing these are no gas friendly cars

 

[Quark]

Quite a few threads posted almost daily concerning gas mileage, diesel over gasoline engines and now, the topic du jour, fuel price increases. Obviously fuel costs are a concern for many except for a vocal few who eschew such thoughts. Very curious.

For those who don't care do you concern yourselves with budgeting or rising prices in general?

 

[SSGUNNER]

The '21 with a 5.3 is nearly the most fuel efficient vehicle we own and consistently drive these days...

Same here, cant stop driving my RST. Its like an addiction. I am more worried about a gas shortage than cost wise but you cant certainly ignore the increased cost at the pump. Will i stop driving, heck no. Im actually planning a trip in the next few wks so at least in the mid west It’ll be much more of a price Im used to here in SoCal.

 

[bigdog9191999]

as an eccentric single income household, there is just the two of us, and we have three trucks as well as a couple cars, and bikes. to say that the fuel prices dont have an effect would be dumb, and in our case it makes me glad i have the little saturn astra we do as i got fuel yesterday and checked my mileage and was pleased with my drive to work coming in at 28.6mpg. now i will not get rid of my trucks ( well may be getting a pickup, that would replace my tahoe) but for the buy in cost of well just about anything i will be keeping what i have, and be prudent to snag any good deals i can manage. but i will just ride my bike and drive the car a little more being i have them.

 

[ChemEng]

The increased cost of fueling my vehicles is nothing compared to the looming overall cost of living increase that will be justified by sustained increased oil prices. EVERYTHING will get more expensive as this drags on... it happened back in 2007/8 and, now coupled with already accelerating inflation, it will likely be worse this go-around.

So i will keep my tahoe delivery scheduled. At least i am getting some utility and enjoyment for the extra spend.

 

[firsttimetahoe]

as an eccentric single income household, there is just the two of us, and we have three trucks as well as a couple cars, and bikes. to say that the fuel prices dont have an effect would be dumb, and in our case it makes me glad i have the little saturn astra we do as i got fuel yesterday and checked my mileage and was pleased with my drive to work coming in at 28.6mpg. now i will not get rid of my trucks ( well may be getting a pickup, that would replace my tahoe) but for the buy in cost of well just about anything i will be keeping what i have, and be prudent to snag any good deals i can manage. but i will just ride my bike and drive the car a little more being i have them

as an eccentric single income household, there is just the two of us, and we have three trucks as well as a couple cars, and bikes. to say that the fuel prices dont have an effect would be dumb, and in our case it makes me glad i have the little saturn astra we do as i got fuel yesterday and checked my mileage and was pleased with my drive to work coming in at 28.6mpg. now i will not get rid of my trucks ( well may be getting a pickup, that would replace my tahoe) but for the buy in cost of well just about anything i will be keeping what i have, and be prudent to snag any good deals i can manage. but i will just ride my bike and drive the car a little more being i have them.

How much car insurance do you pay a year owning 3 trucks & 2 cars?

 

[bigdog9191999]

How much car insurance do you pay a year owning 3 trucks & 2 cars?

Why you gotta lay me out like that! .

Not cheap for sure. But we usually have 4 on the road at a time. At roughly 2k for the year, and another 600 for the bikes. Almost everything has full coverage when driven ( Tahoe don't because it was wrecked previously and is a beater truck).

 

[GTPace500]

I don't understand - is this folks' first go-around at high-priced gas? This is par for times of global conflict, and just as it has in the past, this too will pass. The more concerning factor is how crude oil prop will affect the cost of literally everything else, since there is a high correlative factor between the price per barrel of crude and the costs of goods and services.

I'm considering cancelling my order for my '22 Premier 6.2 Tahoe not because of Gas, but because of the literal manuf. markup on the vehicle itself coupled with the fact that I'd be paying for premium packages that will be missing (without a capability of retrofit) expensive line-items and would barely net a credit ($50 for 4-way lumbar seats, parts of which cost hundreds). I'm also intrigued as to what the used market might look like in a few months considering the worried sell-off as well as people straddling the line between the model years (I might just wait for the 23s at this point).

 

[Cliff-Yukon]

Gas prices hurt, but I don't think it'll deter demand too much as hopefully this is a short term spike. Maybe the gas increase coupled with other inflation might tho!?! In the end someone driving 20K miles a year avg 17 mpg uses 1150 or so gallons so that's another $1,500-$2K or so a year. If budget was that tight, maybe a $65K-$90K SUV wasn't the best vehicle..... Also, in terms of demand, if there are still folks willing to pay $5K+ over MSRP I can't imagine that and extra couple grand of gas would deter them, although logic is funny sometimes.

 

[Cryptocap]

Quite a few threads posted almost daily concerning gas mileage, diesel over gasoline engines and now, the topic du jour, fuel price increases. Obviously fuel costs are a concern for many except for a vocal few who eschew such thoughts. Very curious.

For those who don't care do you concern yourselves with budgeting or rising prices in general?

For me, it’s not that I don’t care, I’ve just come to accept that these things will go up and plan for that. Food cost, travel, etc. It all is affected by higher fuel cost. I use an app to budget my money because it conveniently connects all of my accounts. I have a certain amount allocated for each recurring monthly costs. I monitor those and adjust as necessary. The money left after budgeting goes to another account for investing.

 

[bigdog9191999]

 

[Quark]

We might surmise that increased inflation will be here for years to come and plan accordingly.

For me, it’s not that I don’t care, I’ve just come to accept that these things will go up and plan for that. Food cost, travel, etc. It all is affected by higher fuel cost. I use an app to budget my money because it conveniently connects all of my accounts. I have a certain amount allocated for each recurring monthly costs. I monitor those and adjust as necessary. The money left after budgeting goes to another account for investing.

I was countering the statement that people who pay $70,000 should not care about the price of gas.

I'll pay cash for a new one someday but I will always fight to keep daily expenses down, it's the way I was raised and it's how I pay cash for everything I have.

 

[Stbentoak]

Also, I think this gas thing will be like housing prices... it will probably go up another .50 to a dollar, say 5.50 ish, then fall back in the fall, say back to 4-4.50 and level off there as the "New Normal"....
Like housing, prices may drop "Some", but they are never going back down to 2017-2018 levels... 400K is the new 250K house for the foreseeable future.... and could even go higher...

 

[Stbentoak]

If they do so, higher interest rates will limit the amount of loans that are approved for a $70+k vehicle which should decrease wait times for delivery.

I think you underestimate the amount of people that pay cash for these vehicles... (Which I'm going to say is well over 50%). Americans are sitting on the highest level of savings in history. I doubt many finance companies would say "Its 10K over the sticker, no problem we'll throw that into the deal" to a family who may be stretched to afford one...

 

[firsttimetahoe]

Gas prices hurt, but I don't think it'll deter demand too much as hopefully this is a short term spike. Maybe the gas increase coupled with other inflation might tho!?! In the end someone driving 20K miles a year avg 17 mpg uses 1150 or so gallons so that's another $1,500-$2K or so a year. If budget was that tight, maybe a $65K-$90K SUV wasn't the best vehicle..... Also, in terms of demand, if there are still folks willing to pay $5K+ over MSRP I can't imagine that and extra couple grand of gas would deter them, although logic is funny sometimes.

Exactly - I can't imagine why someone would buy a Full-Size SUV this expensive and then worry about being able to fill it up at the pump with higher gas prices.

 

[firsttimetahoe]

Here we go again....

It's certainly going to reflect in the reports concerning inflation. The Fed should take that into account and increase interest rates faster than they had planned to in order to control prices.

If they do so, higher interest rates will limit the amount of loans that are approved for a $70+k vehicle which should decrease wait times for delivery.

They're not going to raise interest rates by much (if at all) in the midst of what's going on with Russia/Ukraine, where we already have rising inflation and now a spike in energy prices.

 

[Polo08816]

They're not going to raise interest rates by much (if at all) in the midst of what's going on with Russia/Ukraine, where we already have rising inflation and now a spike in energy prices.

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

 

[Polo08816]

I think you underestimate the amount of people that pay cash for these vehicles... (Which I'm going to say is well over 50%). Americans are sitting on the highest level of savings in history. I doubt many finance companies would say "Its 10K over the sticker, no problem we'll throw that into the deal" to a family who may be stretched to afford one...

If anything, I think people tend to over-estimate instead of under-estimating the assets of the majority of American families.

My friend just checked the Manheim auction prices for 2021 and 2022 Yukon Denali XLs and the prices have dropped significantly over the past 60 days along with most of other vehicles.