Gas Prices Falling, Less Demand For Hybrid, Electric Vehicle

Gas Prices Falling, Less Demand For Hybrid, Electric Vehicle 

US Today just reported that Ford is reducing the price tag totally battery powered plug-in Focus Electric for a flat $ 6,000. That's on top of a price reduction of $ 4,000 in the same car a year ago. The new sticker price is $ 29,995 including shipping, but not including federal tax credits of up to $ 7,500 and state incentives that could effectively knock another $ 2.500 sum that buyers pay.

First, the model does not fit in the narrow field of other vehicles in its level. Secondly, the gas prices have been getting low definitively the price of this car fuel had to fall. It is expected that the price of gas to get cheaper until 2015. So to improve sales manufacturers are paying attention to a difference between traditional cars and alternative fuel cars there.

The average price at the pump has fallen in 52 of the past 59 days, according to AAA data. In September, the average fuel economy of new cars sold fell 0.3 miles per gallon to 24.6 miles per gallon, the more inefficient number in nine months, researchers at the University of Michigan say. That means that buyers were already opting for cars with poor fuel economy, even when gas prices were still above $ 3 a gallon. In some states, the price could fall below $ 3 in the coming days or weeks.

This relationship between gas prices and sales is "quite remarkable," says John Krafcik, president TrueCar website. "For months, when gas prices are low, less fuel-efficient vehicles tend to have higher market shares and vice versa. It's a pretty one to one relationship."