Are consumers stupid?

Dear economics students,

Do you remember one of the keys to a free-market system is having well-informed consumers who make smart choices about what they buy from producers. Now there's a problem with this model. The problem is that consumers are stupid. Please read this article and you will discover that:

1. Due to higher gasoline prices, consumers did not spend as much on clothes and other items. That's smart. They're budgeting properly.
2. Auto sales increased 0.7%, in contrast to a 0.3% drop in other retail spending. That's not so bright guys! Did you remember the higher gasoline prices? Buying more cars is not a good move.
   

I don't know what to say. I really want to believe that people are intelligent enough to make smart decisions about what to buy, but I don't see any evidence of this. Will somebody please prove me wrong? I really want to be wrong about this one.

Flocons De Mais