It’s a fact that motorists are still driving in the wake of high gas prices, but a downside may exist for the aftermarket. Consumers are cutting corners in other areas as gas prices rise, so they may let automotive maintenance fall by the wayside, according to industry research.
Despite fluctuations in fuel prices, about 15 million new cars and trucks hit the roads each year, and this year is no exception, according to the American Automobile Association.
Production of U.S. vehicles is down this year, but U.S. light vehicle sales are up about 1 percent over last year, notes Ward’s Communications, indicating the majority of motorists are unfazed over what they’re paying at the pumps.
While fuel prices rose to record highs in 2004, they are expected to decline during the holiday season due to lower crude oil prices and the recovery of refineries that were battered during this year’s hurricanes.
At press time, gas prices hovered around $2 a gallon; Gaspricewatch.com reported $2.79 a gallon in San Francisco and $1.66 a gallon in St. Louis.
In what a motorist pays for a typical gallon of gas, about 52 percent goes toward crude oil, 22 percent goes toward taxes, 14 percent is paid for refining and 12 percent is for distribution and marketing, according to the U.S. Department of Energy.
The main reason people continue to drive regardless of price at the pump is they don’t really have a choice, says Frank Hampshire, AASA/MEMA director of research.
“On average, in the U.S., there’s a 26-mile commute,” he says, pointing out society’s proclivity for living in the suburbs, which leads to a dependence on four wheels.
He adds families are still more likely to take vacations regardless of pump prices and will drive to their destinations instead of using other modes of transportation.
As motorists continue to drive and the cost of living increases, “your money does not go as far anymore,” Hampshire states. “If you’re [logging] the same amount of miles, you’re going to have to find that money somewhere.” And that “somewhere” will most likely be the automobile’s maintenance. For example, a vehicle’s tires may be a little bald, but the driver will probably put off replacing them in favor of uninterrupted driving, concedes Hampshire.
Rather than decrease the miles they are on the road, “what we may see instead is a shift in the types of vehicles Americans drive,” adds Hampshire. “We are seeing increased interest in diesel and hybrid vehicles.”
We’ll probably continue to see more peaks and valleys in these prices until a reliable energy policy is established in this country.