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Rising Gasoline Prices Can't Stop Record-Breaking Vehicle Sales

11 March 2000

    WASHINGTON - Despite rising gasoline prices, vehicle sales have soared ahead 
of last year's record pace during the first two months of the year, according 
to the National Automobile Dealers Association.

    Gasoline prices increased 32 percent in 1999 and 10.6 percent in the past
two months of this year. Vehicle sales, which reached a record-breaking 16.9
million units in 1999, are so far selling at an annual pace of 18.5 million
vehicles through the first two months of this year. NADA Chief Economist Paul
Taylor expects strong sales to continue, although a rise in interest rates
during the second half of the year may cause a slight slow down. For now,
Taylor says consumers would need to perceive significantly higher gas prices
-- above $1.80 a gallon -- as being permanent before they make dramatic
changes to their vehicle buying habits.

    "Consumers have more options than ever when selecting a new vehicle,
particularly when shopping for an SUV or minivan. Several new hybrid vehicles
blend in some sedan features, and can offer significantly higher mileage when
powered by smaller, more economical engines," says Taylor. "Dealers can help
consumers find the vehicle that meets both their transportation and budgetary
needs."