Gas prices dropping, large vehicle purchases rising

By: Lanetra Bennett
May 8, 2017

TALLAHASSEE, Fla. (WCTV) -- Gas prices fell five cents in the past week, and AAA says drivers will see more discounts this week.

The auto club says if the trend continues, we could be celebrating Memorial Day and the summer with $2 pump prices.

Car dealers say when there's a decrease in gas prices, there's usually an increase in sales of trucks, larger SUVs, and third-row seat SUVs.

"It's time for me to get another car. So, I want to get me an SUV now." Said, Tallahassee resident, Betty Barr.

Jason Moseley, a sales manager at Werner Hyundai in Tallahassee said, "I've been in the car business for a while. I remember in 2008 whenever gas prices hit $4.25 and $4.50 a gallon, we had a lot of people who couldn't afford $120 to fill up a fuel tank for a Tahoe or something like that. So, we had a lot of people coming in trading in those larger SUVs and buying midsize or small sedans."

The national average price of gas is $2.35. Florida is seeing the lowest in more than a month at $2.37, and Georgia is at $2.25.

"Oh yeah, I'm excited about that." Barr said.

The downward trend is expected to continue. AAA says gas prices could be down to $2 by the summer. Barr said, "All that money that you pay in that gas, you can reward that to something else. And then, I like to travel. When it's time for me to go, I don't have to go rent nothing to go nowhere. I can just jump in and go about my business."

Moseley says even with falling gas prices, hybrids are still big sellers.
Pointing to one of Hyundai's newest cars, he said, "Annual fuel costs estimation for this vehicle is $650 a year."

AAA says gas prices are falling because of continued high production rates from U.S. refineries, moderate demand, and a recent drop in crude oil prices.

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