Fighting High Gas Prices

Gasoline prices are outrageous and they just keep going up. The average price for a gallon of gasoline is now around $3.00 per gallon. Industry experts predict that the price of gasoline will top out by the end of summer at $4.00 per gallon. Families have had to forgo going on vacation simply because they cannot afford the gas to make the trip.

So what are we to do about this astronomical problem? We've tried not buying gas on certain days; that didn't work because we bought twice as much gas on the next day. We've tried not buying gas from certain companies; that didn't work because almost all gas comes from the same refineries, so they're still selling gas. Carpooling, using mass transit, walking and biking are still viable options, but there has to be more we can do.

There is. And it's as simple as changing the way you think about buying automobiles.

We have to quit buying these monsterous SUV's and big pickup trucks. As long as these huge hunks of metal and their big, thirsty engines roam the roads, the demand for more gasoline will always be there. Sure, there are certain classes of people who need the towing and hauling capability (people who regularly tow large boats or trailers, contractors working on the job site) of a large vehicle, but most people don't need a Suburban or an Excursion just to drive back and forth to the office. And these are the people who are primarily responsible for gas prices being what they are.

You see, big vehicles demand lots of fuel. And because of these big vehicles, refinaries have to keep working and working to produce enough gasoline for them. And as long as the demand for gasoline is there, the supply of gas will always be expensive.

Think of it like this. Suppose EVERYONE in the Unites States started eating strawberries. Lots of strawberries. To keep up with the demand for strawberries, strawberry farmers would have to plant more strawberries. They'd have to buy more land to plant the strawberries. They'd have to hire more help to plant and pick the strawberries. They'd have to buy more trucks to deliver the strawberries. More trucks means more fuel. As a result, the price of strawberries would go up. Way up! Probably double or triple.

Do you remember when the PT Cruisers and the Mazda Miata's first went on sale? These were very popular vehicles. Everybody and his brother wanted one. As a result of this demand, manufacturers had to increase the supply of these vehicles. If, by chance, you found a dealer that had one of these vehicles, and you wanted one, you could bet your last dollar that there would be no "haggling." Oh no, no good deals, no discounts, no rebates, nothing. Dealers not only were getting full retail for these cars, but thousands of dollars ABOVE retail. If the PT Cruiser had a MSRP (manufacturer's suggested retail price) of $19,000, the dealer would ask (and usually get) $22,000 or more for the car. That's supply and demand in a nutshell, folks!

In order to get gas prices to come down, we've got to lower demand. And we do this by buying small, fuel-efficient cars, trucks and SUV's. If everyone would start driving small cars and trucks, gasoline demand would come down and so would the price. It's a given. Without the demand, the supply is less expensive.

But don't expect to trade in your gas guzzler for a smaller vehicle and expect to get a fair price for your trade in. Dealer's lots are cram-packed with these huge used gas guzzlers that nobody wants and, as a result, dealerships don't want or need any more. Expect to receive thousands of dollars less than what your car is really worth. That is, if the dealer will even buy your trade-in.