Behind The Wheel

LATEST FROM OUR BLOGS

» More

- Why Google is Paying $750 Million for Ad Mob

MORE HEADLINES

» Markets | Economy | Companies

- Electronic Arts Beats Street, Announces 1,500 Job Cuts

BEHIND THE WHEEL VIDEO

» More

The Nikkei Business Report

12 hrs ago

The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

Fiat's 5-Year Road Plan for Chrysler

05 Nov 2009

Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

Ford's Safer Seatbelt 05 Nov 2009
Ford is unveiling its groundbreaking seat belt. CNBC's Phil LeBeau has the details.

Chrysler's Rebirth

05 Nov 2009

Chrysler is kicking off its rebirth and hoping its new game plan will please the government as well as the industry. Mike Jackson, chairman and CEO of AutoNation, shares his insight.

Toyota Reports Surprise Profit, but Outlook Bumpy

05 Nov 2009

Toyota's results blew past expectations Thursday. The Japanese automaker posted a surprise quarterly profit and halved its annual loss forecast. "Toyota is still making a loss. It's still going to face a very difficult future ahead," Graeme Maxton from The Insight Bureau said. "This doesn't mean that the auto sector has turned around."

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Are Gas Prices Still Scaring Car Buyers?

Published: Thursday, 2 Jul 2009 | 9:33 AM ET

Text Size

By: Phil LeBeau

40%.

Hyundai says that percentage of people in the market for a new vehicle or worried about gas prices or that factor is influencing what they choose or if they choose what to buy. Hyundai is trying to ease those concerns by running a new promotion where buyers of most Hyundai models join a program where they never pay more than a $1.49 a gallon for the next year. As promotions go, I think it's a smart move. It will get Hyundai in the conversation with many buyers.

2009 NY Auto Show

Top Ten Gas-Sipping Cars

Milestones in the Auto Industry

But that 40% stat is one I and others in the auto industry have trouble buying. I find it hard to believe almost half the people in the market for a new car are that worried about the cost of gas. They certainly don't want to pay $3.50 a gallon, but with gas at a national average of $2.63 there are (in my opinion) simply not that many car buyers freaked about the cost of gas.

So what's driving people to buy or not buy right now? I believe the primary factor is still the economy. When I talk to dealers around the country they tell me there are more people walking showrooms, but still a reluctance to pull the trigger. I can't blame them. We've all heard the worst has passed and that things will get better in the second half. But until we see that actually happening, I think many would be car buyers are waiting.

This is the reason June's sales rate didn't surprise me. Wall Street was targeting an annual sales rate of 10 million. The research firm AutoData says the month came in at 9.69 million. Actually a decrease from May. Proof there's still a lot of apprehension in the market.

_____________________________________
Click on Ticker to Track Corporate News:

- Ford Motor [F Loading... () ]