Pricey gas? We still love SUVs
While gas prices continue to rise, half the people looking for a vehicle online are seeking out SUVs and trucks.
Last week the cost of oil hit the highest point since the recession started, and closed today over the $100-per-barrel mark. Fuel prices are still headed north too -- but that isn't stopping people from buying gas-guzzling SUVs, according to a new report from AutoTrader.com. Post continues after video.
The report examines what online visitors were searching for last month, and it finds that trucks and SUVs accounted for:
- nine of the top 20 most-searched new cars.
- 12 of the top 20 most-searched used cars.
- 11 of the top 20 most-searched certified pre-owned cars.
On top of that, the report took a longer view and noticed that three of the four models that surged in popularity over the past year -- moving up at least 25 places in search rankings -- were SUVs, including the Honda CR-V, Ford Explorer and Jeep Grand Cherokee. The only non-SUV up in popularity? The Hyundai Sonata, whose current year model gets up to 35 mpg, according to Edmunds.com.
- MSN Autos:Find the cheapest gas near you
Gas price spikes desensitizing us?
AutoTrader CEO Chip Perry has a depressing theory: We're getting used to it.
"Every time there's a spike in gas prices, the 'new normal' for gas prices goes up," Perry says.
While fuel efficiency tends to take the wheel after price spikes, it quickly takes a backseat to other priorities like size and style. "Right now, consumers seem relatively comfortable with the price of gas, which pushes other things to the top of their consideration lists when shopping for a car -- things like utility, style and size," Perry says.
Electric market not getting the jolt it needs yet
Electric cars may make sense in the long run, especially for the environment. But right now there are a lot of challenges both for those designing and those driving them. We recently covered the consumer side in "5 reasons NOT to buy an electric car." But a new research report (.pdf file) from tech consulting company Accenture highlights the challenges for the electric car market itself:
- Cost. The business case for infrastructure investment -- building charging stations that will function as gas stations do now -- is weak because of high costs and the current consumer preference to charge at home. Accenture says pilot studies "reveal a risk that consumers may not use public charging spots at rates required to recover costs, which range from approximately $5,000 per charging station to $50,000 for units capable of fast charging a car in approximately 30 minutes." And until it's clear electric will be profitable, few will want to jump on board -- which means there won't be enough charging stations to go long distances, which in turn means fewer people will see the benefits of going all-electric.
- Control. With electric cars generally meeting the needs of urban drivers with shorter commutes, not everyone will charge daily. Apparently, this creates some uncertainty for utility companies. Accenture says irregular charging "increases unpredictability and reduces control. Plugging in vehicles whenever parked will help grid management, easing the strain on the grid." Basically, utilities need to figure out how to reallocate their resources and how to pay for this new use.
- Scale. With so few people driving electric cars right now, it's hard to get a good read on their long-term impact or what will happen when the market starts picking up. Accenture says there's currently no thorough way "to robustly test the technologies and their integration with each other." Safety and security standards also need to be developed, alongside consumer education programs.
So, sure, it's 2011 and we all thought we'd be driving flying cars now -- but the truth is we're still struggling with electric ones.
More from Money Talks News and MSN Money:
VIDEO ON MSN MONEY
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.