Fuel prices – the HP solution

It would be way too easy to comment on the fuel price “crisis” as hysterically reported in the UK press this week, but…

Are we going to see repositioning of car prices, especially for used cars, on the basis of fuel economy or as in previous petrol price panics will we forget the real cost of travel by car pretty quick, accepting the base level cost change. Certainly on nearly life expired cars, which depreciate less than £1000 a year (i.e. my 9 year old Volkswagen, worth £1,500, with 140k on the clocks) the annual fuel bill is the biggest expense – so do I change it to a more fuel efficient car to reduce the annual operating cost?

Its certainly too early to see an impact on the business of promoting sustainable transport alternatives. 

As I still pay £30 to replace the ink cartridges on my £35 printer perhaps we could see a new disposable car model develop or is there a flaw in this analogy?

[PS watching MotoGP from Mugello while blogging this – oh, the irony]

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