FI showroom red and grey logo
MenuMENU
SearchSEARCH

Experian Automotive: Segment Sales Still Driven by Gas Prices

New study from Experian Automotive shows that a $1 spike in a gallon of gas could increase the volume of the small-car economy segment by 7,000 units.

by Staff
February 14, 2013
2 min to read


SCHAUMBURG, Ill. — A rise in gas prices translates into a significant increase in the market share of the small-car economy segment, but a decrease in the full-sized pickup truck segment, according to study conducted by Experian Automotive over a five-year period.

The analysis showed the biggest market share gainer to be the small-car economy segment, with its market share rising by 0.7 percent for every dollar increase in fuel price. This means that if gas prices increased by $1, in an average month with 1 million unit sales, the small-car economy segment volume would increase by 7,000 units. Conversely, the same price increase would cause the full-size pickup truck segment to lose 0.5 percent market share.

Ad Loading...

With approximately 18,000 new-vehicle dealers in the country, these findings show that on average, a $1 spike in a gallon of fuel means every dealer in the nation could see one more small-car economy vehicle sale approximately every three months.

“Everyone knows that a rise in fuel prices changes consumer purchasing behavior,” said Erik Hjermstad, lead analytic consultant for Experian Automotive. “But the question is, how are various segments influenced by a specific rise in fuel prices? In some cases, the shift in market share can be significant.”

Furthermore, sales of hybrid trucks actually fell by 0.1 percentage points. Hybrid cars went up by just 0.2 percentage points, and electric vehicle sales were up by only 0.1 percentage points. While these vehicles are still likely to be solutions to long-term transportation challenges, currently, there is low market demand, even when gas prices increase significantly.

“While higher fuel prices tend to get people talking, actual consumer behavior is affected primarily at the vehicle segment level. What this means for dealers is not necessarily a change in the number of vehicles sold, but rather a shift in which vehicles people are buying,” Hjermstad said. “Smaller cars definitely pick up market share, and full-size pickup trucks and SUVs definitely see a downturn. But, the magnitude of these shifts is also a function of how quickly gas prices increase or decrease.”

Hjermstad also suggested that dealers who closely monitor their market and have a better understanding of the vehicle sales in their region will be in a better position to react to fuel price changes, making better business decisions that keep sales up and inventory at the right level to meet demand.

More Auto Finance

Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
Ad Loading...
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Ad Loading...
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →
Couple talking with auto salesman next to new car inside dealership
Auto Financeby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Photo of a loan contract on a desk
Auto Financeby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →