Gas Prices Cause Consumers to Spend Less on Transportation

As gas prices are going up all over the country, American consumers are spending less on other things and household items. They want to be able to afford to take the kids to school, go to work and eat something. They know that most of their incomes will go to fuel. With the recent devastation caused by the recent hurricane and flooding in the gulf states disabling many oil platforms, we,consumate consumers of energy, should expect to pay more for gas. The government is trying to help us out by tapping into the strategic oil supply. The President will allow the temporary use of some of the supply.

It does not take a scientist to figure out that the remaining months of Summer and the beginning of the Winter season may bring bad omen. Heating oil is going to be costly unless the major oil-producing countries including Venezuela, Saudi Arabia and Nigeria can up the productiong. Already, the house of Saud and president Hugo Chavez have said that their countries want to provide oil to help the US.

It goes without saying that the money that could towards new cars will be gone. Having said so, the auto industry should expect to discount more. That also means that they may not make much money doing so. The volume of their cars will go down but so will the profits. People are staying away from dealerships. They are afraid of sharks lurking in these dealerships who are waiting to exploit them. When GMC runs their campaign, many unsuspecting buyers got ripped off. The Employee Discount helped bring consumers into the dealership, but the finance guys resort to the same old tactics by adding so much on top of the price which balloons to exceed what was advertised. I am going to get $4000 from Kitahara GMC, Pontiac dealership. Even though I explicitly told the finance guy that I was going to refinance, he threw some of the services which brought my fees up. He'll have to repay. At least, his maneuvers are being revealed.

Very few consumers will be able to afford to buy new cars. The 2006 models are expected to do poorly in the various dealership lots. SUVs are expected to do even worse. People know them as gas guzzlers. They are staying away from them. Considering that the auto industry has bet on them for the past few years, it's going to plunge them into more debts. Unless gas prices go down, these companies should expect some tough months.