Newswise — As the price of gasoline continues to climb, consumers are beginning to reevaluate their criteria for purchasing new vehicles, according to a survey of 1,200 people conducted by the University of Maine.
A key question on the survey asked consumers, if they were going to replace their current vehicles, what class of vehicle would they choose. The choices were cars, station wagons and mini-vans, SUVs and personal pickup trucks.
"The most significant thing that we found is that people were less likely to select a truck when gas prices went up," said Jack Cohen, author of a recent report on the survey. Cohen is a fourth-year honors student at UMaine who graduates May 13 with a bachelor's degree in Environmental Management and Policy.
People's preferences for an SUV, however, were not diminished by higher gas prices, or, presumably, by low gas mileage. "The demand for SUVs is very inelastic, it doesn't move. People's buying decisions around SUVs involve a cultural popularity. People are willing to put up with more to drive them," Cohen says.
Another interesting statistic showed that 60% of people surveyed think that all vehicles pollute about the same. But, when people believed that trucks or SUVs were more polluting, they were less likely to select them.
Cohen analyzed the results of the Maine Car and Truck Survey, conducted in Maine in 2004 and 2005, when the weekly average price of gasoline in the state ranged from $1.88 to $2.57. It was funded in part by the U.S. Environmental Protection Agency.
The survey controlled for demographic factors that can affect truck buying, such as age and income.
"What this survey shows is that all things being equal, when gas prices rise people would prefer not to buy a truck," says Todd Gabe, associate professor in UMaine's department of Resource Economics and Policy and Cohen's faculty advisor.
This finding runs counter to market data that show truck sales remaining stable. But, Cohen and Gabe say, people might answer a survey one way, considering environmental factors, gas prices and other issues, but when it comes to making a purchase maybe they choose a vehicle based on other preferences, such as popularity or utility of a vehicle.
"The analysis also showed that consumers who drive farther in their daily commute and other activities were more likely to buy a car, while consumers who drive less and used their vehicle for hauling were more likely to purchase a truck," Cohen says.
"People who need to buy a truck for their job, they're going to buy a truck. Although people's views of gas prices and concerns for the environment may be considered, the use of the vehicle is still the determinant of choice," Gabe says.
Cohen's study is part of a larger project conducted by the UMaine Department of Resource Economics and Policy, and the Margaret Chase Smith Policy Center. The Maine Department of Environmental Protection, Natural Resources Council of Maine and the Maine Automobile Dealers Association are also involved in the broader effort.
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