Kelley Study Shows High Gas Prices Alter New Vehicle-Buying Decisions

Kelley Study Shows High Gas Prices Alter New Vehicle-Buying Decisions

With gas prices reaching their highest level in recent history ($3.10 a gallon for regular unleaded as of last week), nearly six out of ten new-vehicle shoppers (59 percent) say that the upward trend in gas prices has either changed their mind about the vehicle they are considering or the one they are strongly considering, which they normally would not have considered, according to the latest Kelley Blue Book Marketing Research study on gas price effects.

With the quick rise in gas prices and expectations for even higher prices heading into the summer, only a small few are not yet fazed, while others plan to do more research before they buy a new vehicle, said Kelley.

Here are some key results of the study:

· 27% of in-market new vehicle shoppers said that current gas prices are having little or no effect on the vehicle they are planning to purchase.

· 14% of shoppers said higher prices did not have an effect on their decisions because they were already planning to buy a fuel-efficient vehicle.

· 41% of those participating in the survey say that if gas prices rise an additional 25 cents above current levels, they too will start researching vehicles they would not normally have considered.

The study also shows a majority of consumers plan to take other steps to combat the hit to their wallets:

· half of new vehicle shoppers plan to purchase fewer retail items such as clothes and shoes;

· more than a third plan to eat out less often;

· another third plan to buy fewer media entertainment items as long as gas prices continue upward;

· and luxuries, like a night out on the town, music purchases and movie attendance could all experience declines through the summer when gas prices are expected to top $4 a gallon.