From the Editors

The price at the pump

neil-blog1For dealers with abnormally high scooter inventories, I would love to tell you that a recent conversation I had with a national economist about future oil prices will brighten your day.

Unfortunately … that won’t be the case.

A recent forecast by the federal government predicts national gas prices will decrease over the short term but increase slightly in 2010. But to get to the question you’re all wondering, no, there aren’t any signs that a 2008 repeat of $4 and $5 per gallon gas prices are in the works.

In fact, the economist likened the 2008 gas price volatility to a “hundred year storm.” Those of us who have lived near the coast are well aware of that term. It refers to the chances of a prodigious and unlikely event actually occurring – and for those of us suddenly thrust in the mpg conversation, it’s not good.

On other hand, gas prices remain above $3 in some parts of the nation and a recent discussion I had with a sales manager in Virginia indicates the price at the pump is still part of the new unit sales conversation.

Is that true in your market?

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  1. In Eastern Virginia, our gas prices are around $2.25 and have been for the past few months. However, mpg is still very much a factor in 49cc scooter sales (well over a 100mpg). Our unit scooter sales are down from last year, but so is our whole volume of MCs, ATVs and PWCs.

  2. Here in the northeast, it’s trendy to be “green”. I’ve seen more than a few non-motorcyclists buy scooters more for the idea they’re being righteous than anything else. Why do Prius owners buy a Prius? Because it LOOKS like a hybrid. If it didn’t look like a Prius, a scooter, or something else obviously very “green” they wouldn’t look twice.

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