Sunday, June 22, 2008

$1.45 Gas


The price for regular unleaded gasoline jumped up 1.5 cents yesterday to $1.45 per liter. That means a 60 liter tank costs you $87.00 and if anyone owns a pickup truck that has those huge 120 liter tanks...wait for it: $175.00 per fill up.

Will $2.00 gas be a reality for 2008? Why not. As consumption worldwide increases and global threats continue to spark everywhere, the law of gasoline land will cause a huge glut of personal wealth on the oil companies.

Just last week some oil companies in Ontario had been fined for price fixing their gasoline prices. Imagine that: A kabal that works together to set maximum profits. Are the oil companies of today the equivalent of Organized Crime? Should the CEO's of those bigger companies be compared to figures such as the Gambino family, or the Russian Mafia?

So you have a gas-sucking SUV or HUMMER or whatever. You're stuck in the car loan for a few years yet to come. The best advice is to stick it out and pay the loan out through the normal course. Selling your pig SUV early and jumping on board with a hybrid is a good plan on getting bankrupt. I ditched my V8 truck back in 2000. I traded it in for a 2000 Cavalier (2.2 liter). After 3 years of that I tried another one (2003). But after 4 horrific years of driving that GM piece of crap, I jumped ship and leased a 2007 Subaru Impreza. And talk about a different universe of quality. Gone was the shoddy workmanship. Gone was the horrendous residual values. Gone was the pain in my back after driving the Cavalier which had a spring in the drivers seat snap.

In 3 years I will be in the market for another new car. I believe the best bet for me will to pursue a Honda this time. Subaru's are great, but I just can't stand the 2008 styling they have for them. So my advice to anyone who is thinking about a car: Buy small, more efficient, Japanese, and avoid Hybrid unless you are willing to spend the extra money and KEEP the car longer than 9 years.

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