Wow, how quickly we forget… After a month of “low” gas prices (which is to say high, but not as high as they’ve been) Americans have seemingly forgotten their newfound love for cars with good gas mileage and reverted to buying gas guzzling beasts. That’s right, sales of Chevy Tahoes and Suburbans as well as Cadillac Escalades went up 2-3X in October as compared to a year ago. Similarly, Ford Expedition and Lincoln Navigator sales jumped 40%, and Jeep sales went up 29%. On the downside, sales of the economical Chevy Aveo and Cobalt fell 30-40%, and the Toyota Prius dropped nearly 9%. Do we deserve high gas prices, or what?
It’s important to keep in mind that these are year-over-year numbers, so the effect of the new model year and/or seasonality should be (mostly) neutralized. To be fair, it appears that car sales were up in general during October, but it certainly seems like a disproportionate amount of that growth went on in the mega-car categories. The only silver lining in all of this is that Hummer sales were flat.
[Source: CNN Money via pfBlueprint]