Analysts Predict $4 A Gallon Gas Within 3 Years, Are You Going To Be In The Right Car When It Hits?

Analysts Predict $4 A Gallon Gas Within 3 Years, Are You Going To Be In The Right Car When It Hits?
Automotive Lease Guide, a leading provider of residual value information, sees three things in 2013: $4 a gallon gas, high residual values for hybrids and compacts, and low values for full-size SUVs. "Gasoline prices are a key driver of resale values at the segment level,” explained Matt Traylen, ALG's chief economist, in a report from Auto Remarketing, a trade publication. "Despite the recent drop in oil and gas prices, we are maintaining our long-term gas price forecast of over $4 per gallon in 2013."

ALG believes that average U.S. gas prices will be $4.13 in 2013. At those prices, mid-compacts will get a relative bump of 13 percent in value compared with the overall industry. After taking supply and demand into consideration, that means auction values for compacts will improve by 29 percent during the next three years.

ALG analysts continue to look back at 2008 when gas prices spiked, and smaller cars and hybrids saw a corresponding jump in demand. Demand for hybrids dropped with gas prices, but have remained above the industry average, according to ALG.




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uaw_laxuaw_lax - 6/3/2010 12:50:14 PM
-4 Boost
Hmm in three years there will be more hybrid, electric and diesl cars on the road then ever before so the demand will not be there so how can they explain this price.

BTW Keep in mind China is attempting to just leapfrog to electric. Prices should remain what they are now.


tattedtwicetattedtwice - 6/3/2010 1:23:55 PM
+2 Boost
Why dont all analysts go predict where THEY will be in 3 years, which will hopefully be shoveling poop in parks or digging ditches. These idiots know nothing and never get anything right; they may as well be 'reading palms' at county fairs for all they've successfully 'predicted'.

They have a good gig, sitting on their wide white @sses, taking blind stabs at what MIGHT happen. If ever any profession needed to just go away, it's this one.


jeffy210jeffy210 - 6/3/2010 1:48:22 PM
+3 Boost
Wow, that's a bit of contempt there, but I don't think that's too far fetched. Think about it, last year people went ballistic when gas hit $3 (at least here in Texas) and then it dropped so people forgot about it. But rather than a sudden spike there has been a gradual increase and people seem to not be paying attention or don't care.


rxh8me9000rxh8me9000 - 6/4/2010 1:44:11 AM
+2 Boost
$3?!?!?! I wish. Gas hit 4 something here.Thats for regular. I have to use premium which was high 4's almost $5.


SteveSteve - 6/3/2010 2:08:58 PM
+5 Boost
Who knows what will actually happen. We have enough oil to easily last another 100 years using today's technology, with more to come. Remember, the Stone Age didn't end because we ran out of stones. Wood-burning did not fall from favor as the primary fuel for lack of trees. These changes occurred because something *better* was available, and it made economic sense.

As long as it's cheaper to burn dino juice than owning and operating an electric car, it'll be a hard sell for electrics. $4/gal will help to level that playing field.

BTW, if you're scared of $4/gallon, step north of the 49th parallel where the Canucks get raped with close to this price now! There is a lack of electric cars there, too.


dumpstydumpsty - 6/3/2010 3:21:30 PM
+2 Boost
I think the rest of the world is waiting for US gas prices to return to $4/gal and extend to near $5/gal.

But I think by that time, another international conflict will occur sending the US into war-mode again --- further igniting the economy --- and giving a pay boost to the middle-class. Gas prices will increase, but unemployment will drop and overall salaries will increase to coincide with the market bump.

Also, don't forget that the value of the Euro is treating water when compared to the US dollar. Various European nations continue to question the joint Euro and want to dissolve the currency. If the US dollar regains its strength on the global market, gas prices will retreat as result. The US is still a major user of fossil fuels with a lot of coin to further pay for it.


WhelanWhelan - 6/3/2010 3:31:01 PM
+2 Boost
I already only pay $20 every two weeks in gas for my Matrix. Of course I only work 3 days a week and take the train those days, the restI do local driving. What's even better is my company reimburses me for all my train expense! WIN WIN.

But in 3 years I'll be paying down a 5 year loan on a Subaru WRX sedan, white please.


quizzquizz - 6/3/2010 7:29:48 PM
0 Boost
No big deal. $5 gas will make mass transit better in Los Angeles and force people to use mass transit and reduce traffic. YES.

For people driving BMW/MB/Porsche/Audi, an extra 30% in gas prices means an additional $600 per year in gas. Ahem. A cup of coffee+bagel every morning is $5, that's $25 per week. Which adds up to about the same thing at the end of the year. No big deal for the car enthusiast who makes $100K+ per year.

The middle class and poor are driving Accords/Camrys anyway.


rxh8me9000rxh8me9000 - 6/4/2010 1:42:55 AM
+3 Boost
That will be the average. So in NY it will be about $4.50-5.00 a gallon.


M35MTM35MT - 6/4/2010 2:04:51 PM
0 Boost
Dont care what gas costs it wont affect what I drive.
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