high gas prices : what we overreact too

heard an interview of dan ariely author of predictably irrational. he brought up a good point on people trading in their cars (generally high gas mpg vehicles) and getting low value for them, even taking a hit on their loan. all because of gas prices going up. he was saying that gas prices have only gone up a dollar in the last year which can equate to $1000 more over the year, but to take on new payments or pay interest to eclipse that raise doesn't make sense financially. you loose more money now with that reaction. so what is someone to do? hmm...