Rising oil prices result in increased electric car sales

Posted on 28 May 2012 by Tony Santos

This year’s anticipated rise in crude oil prices is expected to lead to a large increase in the sales figures for electric cars across Europe. Following constant increases in the price per barrel of crude oil, many Europeans appear to be looking to cut the long-term costs of running a vehicle by switching to an electric car.

Crude oil prices have risen consistently over the beginning of the year, reaching a 15 per cent increase from the start of the year and costing $128 (approximately £80) a barrel at the end of March.

As consumers look for cheaper alternatives during a period of financial instability and hardship, the potential to save on the running costs of a vehicle seem to be a greater attraction than the larger initial cost of purchasing an electric car.

Increased prices change consumer trends

These figures seem to indicate that more consumers are taking the time to look at cost cutting techniques that have not been as prevalent in the past. This is also reflected in the increasing number of people who visit a comparison sites such as Compare The Market in an effort to save on insurance costs and other associated vehicle expenses.

In a time of austerity, consumers aim to save as much as possible. This means reviewing all the factors which affect common expenditures. In the case of cars, this covers everything from the type of car you drive to what you use it for and could explain the rise in popularity of electric cars.

This expected rise has also been accompanied by an increase in new car sales, which was recorded at the beginning of the year.

March, which typically sees the greatest number of registrations over the year due to the fact that this is the month in which new plates are released, has proved to be a much better month than expected.

Figures from the Society of Motor Manufacturers and Traders (SMMT) showed that new car sales in the UK witnessed a 1.8 per cent year on year rise at this time with 372, 835 new car sales – more than the SMMT’s forecasted figure of 350,000.

Consumer confidence?

With both electric car sales and traditional petrol and diesel powered vehicles expected to show increased sales this year, it appears that consumers feel a little more comfortable with their economic situation.

This could be a reflection of consumers’ ability to adopt money-saving measures which manifest themselves in numerous formats. Whether it is searching for promotional deals online or comparing basic costs, Brits are now more adept than ever at saving money and this may give us the confidence we need to spend.

The trick to saving money is identifying where you are losing it. This could mean reviewing the type of car your own or evaluating the firm who provides your household utilities – whatever the case, it is vital that households continue to save money in any way possible.

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