PETOSKEY, MI -- Gas prices are fueling driver frustrations after another big jump.  Prices are now up to $4.17 a gallon in Northern Michigan.

According to AAA, this is the first time the statewide average for a gallon of gas has jumped above $4 since 2008.

The auto club says that prices for self-serve unleaded rose 6-cents per gallon overnight to a statewide average of $4.04.

That's $1.20 a gallon higher than this time last year.

The spike in prices has many of us looking for ways to save.

For some, that means trading in their old gas guzzler for a new, more fuel efficient ride.

In the past couple of weeks, people have been bustling through the showroom at Dave Kring Chevrolet and Cadillac, looking for more fuel-efficient cars.

"Every other day, you're putting $15 in, $20 in, whatever you can afford," explained Mark Donker, who is fed up with the fuel prices.

Donker needs his truck for work and he says starting it up is painful. 

"$14 for 3.3 gallons," Donker explained.

And that kind of math means Mark and others are thinking about small-fuel efficient cars

"We have customers that want to purchase those vehicles, so as soon as they hit the lot, they're going to be back on the road with a customer in them," said Art Schupbach, Dave Kring New Car Manager.

Schupbach says small cars are leading the way in sales and he expects that trend to continue

"We will have inventory shortages moving forward, with gas prices, record sales, lack of inventory, it'll be interesting," said Ryan Bremmeyr, sales manager at Subaru By The Bay.

Bremmeyr of Subaru By The Bay is also seeing more people looking to downside their ride. The Subaru Outback and Legacy average about 30 miles per gallon and have a price-tag of $18,000 to $25,000. 

"We want something that's going to get good mileage if we're going to travel," said Paul McGlynn, who recently purchased a more fuel-efficient vehicle.

On the Chevy lot, it's the same story.  The Cruze is popular.  It gets 36 miles per gallon and sells for about $20,000.  The new Volt, an electric-powered car, gets 93 miles per gallon.

"Everyday, somebody walks through the door and they're asking for that vehicle," said Schupbach, talking about the Volt.

"If i bought this motorcycle or that scooter and get 50 miles to a gallon, it's about free," said Scott Miller of Miller’s US-31 Sales.And for people looking for two wheels instead of four, motorcycle and scooter dealers are hoping to see sales rise as fast as the price of gas.  For $1,500, you can hit the pavement with a scooter.

As people continue to come in and buy the cars that get better gas mileage, the less fuel-efficient vehicles are ending up on the used car lot.  Right now, the values haven't dropped significantly, but all the dealerships say if the price continues to rise, those cars will most likely lose value.

Now if you can't afford a new car, we have you covered.  For gas-saving tips, CLICK HERE.