Strange Times, Indeed: A Used Car Price Higher Than Showroom New

By Francie Grace on August 1, 2008

Painfully high gas prices are producing some unexpected phenomena. USA Today reports long waiting lists for the hybrid Prius have pushed prices for used models with about 8,000 miles on them to about $1,300 more than you'd shell out for a new one. Meanwhile in L.A., a new type of road rage has emerged – not at the gas station, as one might expect – but in the form of clashes between folks who've recently begun bicycling to work and those who are sticking with their cars. The Wall Street Journal notes Los Angeles has few bike paths and bike lanes, and bicycles are illegal on the freeways. "Cyclists have equal rights, but in fact a lot of motorists think they should get off the road." Lynne Goldsmith, manager of the Los Angeles Metropolitan Transit Authority's bike program, told the Journal. "When we're used to seeing more cyclists, we will treat them better."

Many Americans are open to behavior changes when it comes to energy consumption. A new USA Today/Gallup poll found about three in ten survey participants said they'd be more likely to vote for a presidential candidate who said they'd have to change their habits to conserve energy, 54 percent said that position would not affect their choice, and 17 percent said they'd be less likely to vote for such a candidate.

Nearly 70 percent said they'd be more likely to vote for a presidential candidate for supported tax incentives to promote energy conservation. Both major party candidates have made proposals along those lines. The poll also found that energy and gas prices topped the list when voters were asked what is extremely important to them in choosing a candidate.

These results are not surprising, considering Gallup's May poll which found 78 percent of Americans who believe high gas prices are here to stay, and 54 percent who expect to pay $6 a gallon within five years. A June Gallup survey also found significant numbers who said gas prices have forced them to change their ways, 15 percent who said they cannot afford driving/commuting, and 11 percent who said gas prices have left them with little or no disposable income or have wrecked their budgets.

Worry about energy prices was also a major finding in our most recent Confidence in U.S. Foreign Policy Index, in which 60 percent of participants said becoming less dependent on other countries for energy supplies would enhance national security "a great deal." That was also the most popular among policy options suggested for improving national security.

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