"I'll Pass Up Vacation to Gas Up My Truck"

[Luckyontheducky]

COLUMBUS, OH--(MARKET WIRE)--Jul 20, 2006 -- According to BIGresearch's July Consumer Intentions and Actions Survey (CIA), when asked if small cars are hot, nearly 62% of over 9,000 respondents said "yes." The survey divided those respondents into categories based on the vehicle they currently own -- from cars and hybrids to trucks, SUVs, minivans and cross-overs (a cross between a car and an SUV) -- to see what role higher gas prices might play in the trend toward small car preference.


"It's clear, especially among truck owners, that people are willing to drive less, spend less and consider every option to equalize the impact of rising gas prices -- including buying a smaller car," said Gary Drenik, president and CEO of BIGresearch. "In fact, those who own trucks have deferred major purchases (35%), reduced dining out (55%) and decreased vacation and travel (58%) just to be able to fill their gas tanks."

The survey revealed that over 60% of truck owners are making fewer shopping trips, plus they are shopping closer to home, using coupons more often and doing more comparative shopping both online and with newspaper ads and circulars.

On the flip side, owners of cars and hybrids are not cutting back so drastically. When asked at what price per gallon gasoline would have to reach before they would change their driving habits, 44% said their driving habits would not change, regardless of price. In addition, 57% of car and hybrid owners said that fluctuating gas prices have had no major impact on their spending.

"The math is simple. When gas prices have gone up over 30% in the last year, a smaller car plus better mileage equals more spending money in the consumer's pocket," said Drenik. "That's why even the most devoted truck and SUV fans might be willing to buy a smaller car."

Of all the respondents to the survey who said they are planning on buying a new vehicle in the next 6 months, 75.9% of car owners said they would consider buying a car, 37.1% of truck owners, 30.6% of minivan owners and 47.3% of SUV owners.

Currently Own a.... Car Truck Mini-Van SUV
----- ----- ----- -----
Which type of vehicle are you considering?
Car 75.9% 37.1% 30.6% 47.3%
Truck 17.5% 36.1% 17.0% 10.7%
Mini-Van 6.6% 12.8% 50.9% 8.1%
SUV 17.4% 25.9% 18.1% 50.6%
Cross-Over (A cross between a SUV and a
Car) 7.2% 4.3% 15.7% 16.3%
Hybrid 7.9% 12.2% 12.5% 12.1%

*The sum of the % totals may be greater
than 100% because the respondents can
select more than one answer.

"If gas prices continue to soar, small cars could be the biggest thing going for the automotive industry," said Drenik. "However, if people continue to have to make sacrifices in order to drive, retailers, entertainment and other industries will have to work harder and market smarter to capture ever-shrinking consumer dollars."

To comment on this release visit the BIGresearch blog: http://whencustomerstalk.blogspot.com.

About BIGresearch

BIGresearch is a market intelligence firm providing analysis of consumer behavior in the areas of retail, politics, and media. The syndicated Consumer Intentions and Actions Survey (CIA) monitors the pulse of more than 7,000 consumers each month to identify opportunities in a fragmented and changing marketplace.

BIGresearch's methodology provides the most accurate consumer information in the industry with a margin of error of +/- 1 percent. Complimentary findings are available at www.bigresearch.com


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BIGresearch
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[got_titan]

sounds about right.....i have cut back on a few things and eating out was one....after getting my house(1250 payment) i realized actually how much gas i was using.....it wasnt pretty!!!

[grunge311]

I am pinching every penny to pay the titan off... then going to buy my GF 38mpg civic and use the titan only when I am towing or hauling. I am hoping to have that all taken car of jan/feb.

[UWSkier]

With gas at $3.29 here in WI, and a daily commute of 34 miles round trip, the Titan isn't cheap. Fortunately, my company is piloting a work-from-home program that I'm on one day a week or so. Every little bit helps. If I had the space in my garage/drive (can't park on the streets), I'd own a beater of a 4 banger or something for going to work and back.

[BigA]

I need a job with a company car so I can save the Titan for the weekends.