With more money in their pockets thanks to lower gas prices and an improved job market, AAA expects more than 37 million Americans to travel for Memorial Day, the most since 2005.
- Jeremy Korzeniewski
- Mar 16, 2015
Big SUVs are selling in huge numbers in the US in 2015, thanks in part to low gas prices. See the top five best-selling fullsize luxury SUVs in the US here.
A report from Edmunds put the average price of a used car in 2014 at $16,800, which is a record, and a 5.7-percent increase from 2013. It also found 1-year-old and 4-year-old cars showed gains at or near the average, while some vintages showed gains of up to 18.4 percent.
A range of economic index numbers are moving in positive directions, at the same time as consumer spending is up, personal savings are down, and gas prices are way down. However, payment companies have found that consumers aren't spending all of their gas savings on purchases.
The federal government mandates that a certain amount of ethanol be blended with gasoline. The price of corn-based ethanol hasn't been affected by the same anchor-drop in price as petroleum fuel, however, and along with that, the complicated mechanics of its pricing and trade are said to be what is keeping the price of gas from falling even further.
We've been hearing for a while that the steady drop in US fuel prices are hurting sales of fuel-efficient cars like hybrids and plug-ins. As far as driving habits, though? Lower prices are the pump are having little impact on how much people are behind the wheel, according to the US Energy Information Administration (EIA).
Gasoline in the US continues its weeks-long descent with prices down about 13 cents a gallon over last week to $2.544, which is lower by around 69 cents/gallon from this time last year, according to the US Energy Information Administration. Many drivers are welcoming the lower bills at the gas station as a fantastic holiday gift, but Ford investors are somewhat spooked over the potential sales implications for the 2015 F-150.
Tesla's stock price was down to around $206 earlier today, but it's back up to over $216 now. Friday, it closed at over $223. Some stock blogs are saying the price could go as low as $165 in the not-too-distant future. What's behind these wild swings that CNBC's Phil LeBeau calls, "the worst seven-day trading period ever for shares of Tesla"? One potential culprit is today's low gas prices.
Naval warfare, aerial warfare, logistical warfare, cyber warfare. There are as many ways to wage war as there are stars in the sky, but economic warfare is perhaps one of the most misunderstood. It's rarely as overt as bombing factories or sinking freighters, featuring more subtle, domestic maneuvers.
It's almost impossible not to notice that it's a lot cheaper to fill up at the gas station in the latter portion of this year. As of December 1, the US Energy Information Administration said the average cost of a gallon of gas was $2.778, down almost 50 cents from a year ago. In general, fuel prices have been on the decline for much of 2014, and the effects have started showing themselves with people seemingly more willing to buy lower efficiency vehicles.