Originally posted on CBS Minnesota:
When gas prices go up, what happens to auto sales? You might have a few hunches — and a couple may be correct — but according to Experian Automotive, you’d likely find some surprises, too.
Experian looked at gas prices over the last five years, paying attention to the way that fuel-price fluctuations affected auto sales. It probably won’t come as much of a shock that as fuel prices increased, sales of full-size pickups decreased. On average, a $1 rise in fuel prices caused trucks to lose about 0.5% in market share.
Nor should it be surprising that small cars gained traction in such scenarios. The same $1 jump at the pump caused sales of small cars to increase by roughly 0.7%. As Experian explains, if we assume 1,000,000 new-car sales per month (which is slightly lower than the present rate, but work with us), that would mean an additional 7,000 small cars sold every 30 days.