Rising Fuel Cost Hurts Starbucks & Hummer, Helps Prius
A new survey from Kelley Blue Book shows that new car shoppers are giving up their coffee cravings in order offset the cost of $4/gal. gas. The survey shows that 28% of new car shoppers have stopped going to Starbucks or other coffee shops entirely, and 21% say they are going less often due to the rapidly increasing cost of fuel.
Skyrocketing gas prices have also changed many shoppers opinions about what vehicles they are considering to buy. The Toyota Prius remains in hot demand, while the gas-guzzling Hummer brand is suffering miserably. According to KBB, 62% of shoppers say that prices have either changed their mind or made them think strongly about vehicles they normally wouldn’t have considered.
Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com, said:
"What was once a frequent occurrence such as the morning trip to Starbucks or taking the family to a ballgame just isn’t as financially feasible when $4-per-gallon gas must also share a place in the budget. The fact that nearly three-quarters of new-vehicle shoppers see this as a permanent situation demonstrates the enormous effect that skyrocketing fuel costs can have on not just the auto industry, but the entire American economy."
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