June 18, 2007


Gas prices directly affect sales of entry-level vehicles, analyst says

Richmond Hill, Ontario – Virtually every month when gas prices go up, so do sales of entry-level vehicles, says industry analyst Dennis DesRosiers. As well, when gas prices go down during the month, sales of entry-level vehicles go down also, he says.

“So we have a consumer that, for months and months, sees fuel prices rising and the moment fuel prices do go down, if even for a month, the consumer goes out and buys a larger vehicle,” DesRosiers says. “It is almost as if they are waiting for lower fuel prices to justify the purchase of a larger vehicle, (and) historical tracking doesn’t seem to matter.”

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