As some of you know, I'm selling new Toyota's for a living now (or attempting to). Almost every single day, I have someone pull into the lot in a big assed truck, SUV, etc, etc that they purchased two or three years ago when few people foresaw the coming increase in fossil fuel prices. Only a very few Americans are able to pay cash for a vehicle...most average Americans have to finance new cars for at least 60 months to get an "affordable" monthly payment. Sooooo, these folks come into the dealership looking for something that gets over 30mpg, which is no problem for several Toyota gas only cars, including Yaris, Corolla, and Camry. Even some of the 2.4 liter Tacoma's (mid size pickup) and Rav4 get close to 30mpg on the highway IF driven at 65mph. They paid 40K or more for that big assed truck or SUV two years ago. Even if gas prices had remained at $2.50 a gallon, they would have negative equity (upside down, or "hooked" as we refer to it) on trade in value. Now, even if they've owned the vehicle for 4 years, they are still upside down due to the plumeting value of these vehicles. And I mean these things are dropping by as much as $1000 a WEEK in value. Some places, like CarMax, etc are refusing to even take these vehicles in trade, regardless, as they cannot resale, or even recoup the trade value at an auction. My advice to those who have one of these vehicles and don't really NEED it for the purpose it was intended, is either take the hit and get rid of it, finance the negative equity into a new loan, and get something they actually can afford to operate, using the gas savings dollars to help offset the higher payment, and get it paid for, or pay on it for 4 years, and they will at least be even on the next trade. If the big assed truck is paid for, and they actually NEED it on occasion, PARK IT, and buy something they can afford to drive back and forth to work and on vacations. More than one person has actually gotten pissed off at ME for offering them 15K on a vehicle they still owe 30K on. That is just the market value...the demand is just not out there for those vehicles. If you NEED a big truck, you can get one for a song now...find a good used one, and you'll steal it.
I had a young medical resident from India buy a Corolla from me this past week...he was telling me about the conditions in his home country now. The average person in his country has always DREAMED of owning their own car, something we take for granted here. It may be a 3K car, but because of the economy in India right now, the average person is finally able to realize that dream. Of course, India does not have the infrastructure to support the boom in vehicles on the roads, so traffic conditions are horrific. Same thing is happening in China. The point is, does anyone think for one millisecond that no matter what we do, demand for fuel is going to go DOWN? If you do, you are living in a separate reality from the rest of the world. We can chew up the entire Rocky Mountain Plateau for shale oil, drill in the Arctic, drill offshore in Florida, blah, blah, blah....which, by the way, would take about 10 years to realize any gain in production....and never see prices drop for fuel.
The bottom line is we can all bitch and moan about prices at the pump, but it's just pissin' in the wind, and it's blowin' all on your friends (Jerry Jeff Walker), but until we get a mindset of driving vehicles that actually FUNCTION to get us from point A to point B in relative comfort and efficiency, it's all just wasted words. Existing technology needs to be improved, and alternative solutions need to be developed...that is the answer, plain and simple. Human beings are not the masters of the Universe, or even this planet. If you are of a religious mindset, the bible says we are given domain over all living things on this insignificant blue ball, and it also says we are to be good STEWARDS as well. Raping the planet for our own selfish needs/wants will only escalate our own demise as a specie.
The guy who invented Hybrid Synergy technology for automobiles tried to sell it to GM..they were not interested, as they were realizing huge profits at the time....so Toyota bought the guy's genius, improved upon it, and now we have one of the most in demand vehicles in the marketplace now, the Prius, now in it's 4th generation of development, and more good things to come by 2010. Now GM has purchased Toyota's 1st or 2nd generation of Hybrid Synergy technology, as has Honda, and a few others. They'll never catch up...
Like it or not, you're going to be driving something very different in the next few years, or modify your lifestyle to put fuel in what you want to drive.