Rising Gas Prices Will Be Factor In 2011 Auto Sales

The rise in gas prices will be a factor in auto sales for 2011. While never good for the economy, higher gas prices increase consumer demand for small cars, hybrid, electric and diesel vehicles. New cars are more fuel efficient and many alternative fuel vehicles or coming to market. Many industry analysts are predicting that gasoline prices will exceed $3.50 a gallon in early 2011 and could see $4 per gallon. In the summer of 2008, gasoline prices hit record levels of more than $4 a gallon and changed the buying habits of consumers for a period of time. Higher gasoline prices will also increase demand for the more expensive hybrids that typically languish on dealer lots when gasoline prices are lower. Sales of diesel cars and trucks also will increase as well.

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