View Full Version : Hybrid Sales Lagging
http://money.cnn.com/2011/09/30/autos/hybrid_car_sales/index.htm?iid=HP_Highlight&hpt=hp_c1
I was bummed to see this headline, but when I read it, I agreed with it.
Two of the points they make are:
1) Hybrids are expensive: the gas savings don't make up for the cost of the car. You might think cost of ownership would be low, but it isn't.
2) The reason Priuses are still doing pretty well vs. other hybrid models is because of their iconoclastic styling--you see a Prius, it makes a statement. But other cars have adopted hybrid versions, and are not as recognizable.
I've had a Prius since 2007, but I aspired to hybrid car ownership since their inception--Honda's Insight was actually the first hybrid I think--I really wanted it, but couldn't afford it.
My "I Made It" car was my Prius, in 2007. I was so happy I could finally afford one. My DH had bought a Honda Fit the year before and told me I was foolish for spending so much on a Prius, but I had to have it! Don't know why--it hit that emotional hot button that all marketers strive to hit.
To get back to the point, hybrids have only done well when gas prices have spiked, and then the used car sales have been great. When gas prices go down, people hunker down in their SUVs.
I just wonder what it will take to get people to move closer to habits that will make us energy-independent. Will it take sustained prices of $5/gallon? The article talks about people waiting for newer gen technology--will that be the tipping point?
Why is that people are just not jumping on the hybrid bandwagon? I love my Prius. It's comfortable, reliable, fun, and I get 50mpg.
ApatheticNoMore
9-30-11, 8:56pm
Well gas prices are back over $4 again. Yes, hybrids are expensive, there are not many used and the used ones cost nearly as much as new cars. I like them, they are just costly, but for those who actually buy midrange new cars it's definitely my preference.
Isn't it unrealistic to expect this kind of thing to be a cost savings? I thought that most people buy it to use up less energy.
Isn't it unrealistic to expect this kind of thing to be a cost savings? I thought that most people buy it to use up less energy.
It can do both. I have a 2008 Ford Escape Hybrid, which I purchased in the fall of 2007. I paid an approx $8,000 premium over the non-hybrid version. I made up $3500 of that difference with the hybrid tax credit.
Since I drive approx 500 miles a week, I now have 98,000 miles on the car and my average mpg is approx 10 miles per gallon higher than the non-hybrid version. By my reckoning I've saved approximately $4000 in gas purchases due to the hybrid's better mileage numbers.
I'm hoping to put another 98,000 or so miles on the car which should bring my total gas savings up to the $8K premium I originally paid, leaving the $3500 tax credit as a bonus.
I don't think there's any tax credits available anymore, so maybe I just lucked out since it would appear to be a wash without the credit.
I bought a used Insight. Really like it.
I'm doing my part; I drive my little gas-guzzler about 1000 miles a year. I really should get out more... http://www.freesmileys.org/smileys/smiley-transport027.gif (http://www.freesmileys.org/smileys.php)
There's no way I'd ever recoup the money I (over) spent on a hybrid.
I'm in the same boat as JaneV2.0. I have a Mustang which doesn't get great mileage, but I've had it for almost 17 years and have only put 86,000 miles on it. I would like to have something newer and more fuel efficient (and maybe not quite so low to the ground - it's not as easy to get in and out as it used to be!), but at the rate I drive a hybrid wouldn't be cost efficient. When I finally get around to replacing it, I'll probably end up with a non-hybrid. It won't be as fun to drive as the 'Stang, though. :)
As I re-read the title to this series, it occurred to me that sales of many this are down. Is the data that hybrids are selling more slowly than equally priced other models?
loosechickens
10-1-11, 3:47pm
We bought our Prius, new, almost four years ago, and have been insanely happy with it....over this four years, our MPG average hovers right around 52 mpg, and we have have ZERO problems with it....not one thing, ever. It has performed perfectly since the day we drove it off the lot with 38 total miles on it (the distance driven from the docks at Long Beach to the dealership in CA where we bought it.) It has never needed anything but ordinary maintenance, such as oil changes, etc. Not once.
We would have been happy to purchase a used one, instead, but were unable to locate a used Prius that wasn't a poor bargain compared to buying new. (such as one with 60,000 miles on it, only $2,000 less than we paid for a brand new one, for example).
We paid $24,500 for it, with no tax credits, appreciate that we are adding virtually no emissions to the air, saving energy and enjoying this most comfortable car while considering it the best purchase we've made in many years.
Because of the necessity of going back and forth to my MILs nursing home, taking her to doctors, etc., and being located 50 miles away from where she is a patient, we've put much more mileage on it than we would normally drive, and I think we have close to 60,000 miles on it at the moment, which is close to double the mileage we would normally drive. Although we try to couple errands with the necessary nursing home visits, our responsibilities there really do rack up the miles.
Over the number of years we are likely to drive it, like Alan, we believe that the savings in fuel and the high reliability factor will mean that whatever premium we paid over a similarly sized non-hybrid will be made up, and then surpassed by the savings.
We look at it the same way we look at our solar photovoltaic system. We've had that long enough for it to have paid for itself in electrical bill savings, and now we are enjoying year after year of completely free electricity, because our savings have covered the original capital investment. At some point, we'll be in that sweet spot with the Prius, and will have enjoyed it all the years along the way to arrival at that "free lunch".
I just LOVE, LOVE, LOVE my little Prius, "Priscilla, Queen of the Desert".
I like the Prius but it isn't a practical vehicle for our family as it wouldn't fit all of us. Someday it might be nice to get a hybrid for Zach for his commuter vehicle. The reason we don't have one now is that we just can't afford one. I haven't owned a vehicle I paid more than $5000 for since I was 22.
My dad was considering a hybrid when he bought his last car, but decided against it as he is retiring soon and doesn't think he'll drive it enough to be worth it. My mom decided against one because she is out of town 90% of the time and her car just sits unused, which the salesman told her wasn't the best for keeping a hybrid battery charged.
Take heart, though. Just because people aren't buying hybrid vehicles doesn't mean they aren't considering the environment. For us, since we barely drive half the year, we'd probably be better off using the extra money on stuff like new windows and doors to make the house more energy efficient. I've also seen articles that the trend among Gen Y is not to have a car at all, which is even better than a hybrid.
Like Jane and Daisy, I hardly drive at all since I retired. Before that, my commuting and travel miles were reimbursed by my employer so going to the extra expense of buying a hybrid when I already drive a paid-for, low-mileage, 2000 Honda Civic didn't make any sense at all. Still doesn't.
I have serious concerns about the crime rate going up as the economy goes down, which I expect it will continue to do for some years to come, so I'd rather not have a car on my parking pad that's obviously fairly new and expensive. I dress low-key, and although I keep the outside of my house neat and attractive, there's nothing flashy about it. One safety measure anyone can take is to fade into the crowd, looking like a really ordinary soul with nothing much worth stealing.
Wildflower
10-2-11, 4:51am
We own a gas guzzler that has been paid off for 5 years now. It is still in great mechanical condition, so far only requiring oil changes. Looking at having to replace the tires in the next year or two. After looking at newer more gas conserving vehicles, we did the math and found that keeping what we have and simply driving less would put us way ahead. Since DH retired and we downsized to one car our driving has been cut by 3/4. When and if this one starts giving us trouble we will purchase a new one, but not a hybrid. Not worth it for us. Have my eye on the Chevy Eco Cruze which gets great gas mileage and the size would work for us I think. They are reasonably priced too....
http://money.cnn.com/2011/09/30/autos/hybrid_car_sales/index.htm?iid=HP_Highlight&hpt=hp_c1
2) The reason Priuses are still doing pretty well vs. other hybrid models is because of their iconoclastic styling--you see a Prius, it makes a statement. But other cars have adopted hybrid versions, and are not as recognizable.
The freakonomics podcast discussed this a few weeks ago. They called it "conspicuous environmentalism" or some such thing. The basic concept being that priuses sell better because a lot of people buy them to make the statement "I'm concerned about the environment" rather than just to save gas or reduce their cost of driving.
The freakonomics podcast discussed this a few weeks ago. They called it "conspicuous environmentalism" or some such thing. The basic concept being that priuses sell better because a lot of people buy them to make the statement "I'm concerned about the environment" rather than just to save gas or reduce their cost of driving.
We discussed the "conspicuous environmentalism" thing here a year or two ago. It was an interesting thread.
Back in 2003 I bought a new Ford Focus Sedan - 4 doors, automatic, a/c, etc... It was a PZEV (Partial Zero Emission Vehicle) with emission levels on par with most hybrids. It got 40 mpg - also on par with many hybrids. It cost $7900 brand new - MUCH MUCH less then ALL hybrids. My point is that you can have a low emissions, high mpg vehicle at half the cost of a hybrid. And it's much less expensive to work on, register, insure. So now that my old Hyundai Accent (also near 40 mpg) has bite the dust, I plan to buy something like the Focus Pzev again. Why pay $25K when you can get something for $12K that does almost the same thing? Plus it looks like a regular vehicle and doesn't give off that "I'm a space-pod from the future" - ala the AMC Pacer - vibe.
I was listening to a podcast about the energy system revolution that is happening in Europe (lateralization of the power grid by tapping into energy gathered through buildings, etc,) and they mentioned that Daimler is going to bring a vehicle powered by hydrogen fuel cells on the market in 2014. I kind of wonder if hybrids aren't a kind of transition stage technology that will quickly be eclipsed by new approaches. Clearly, they haven't quite found a way to make the cost/benefit analysis pay off for most people yet. I think limits on supply may also be an issue -- my sister is on her second Prius. Her first one was showing signs of its age last spring, and she jumped at the chance to replace it right after the earthquake in Japan when there was talk of them not being able to maintain the supply. She has been very happy with her two Priuses -- she has a long commute, and her overall savings are probably in the range of what Alan mentioned as a result. I also really like the car, especially the new model. If they didn't have such ridiculous tariffs on them here in China that push the cost up to at least US$50-60k, I would consider buying one if/when we eventually get a car.
lhamo
Catherine,
I had a Hybrid Civic for over a year, I believe 2005. Nice car over all. I traded it in for a Fit to carry my dogs better at that time , no other reason. Anyhow, my thoughts have always been, the over all cost of purchase/upkeep does not out weight the gas savings as sad as that is. I live in MI and the Civic dropped MPGs in the winter, which made it no better for about 5 months a year then any other small car. I also own a GEM which is all electric. As fun as it is and I say More Smiles Per Mile with it, it is not more then a toy. When I passed the Fit on to my son in college, I considered the Prius or hybrid Civic again, but choose a Smart.
I think the average consumer who has no concern about the environment, would need to see a HUGE savings to purchase a Hybrid. Or jump on a Bike like I generally do.
catherine
10-17-11, 3:09pm
ctg:
Funny, my DH's car is a Fit and we both love it. And I have to admit there were a few moments when I thought to myself, maybe I should have just gone with another Fit. At the time, there was about a $12k difference between the prices in the two cars. The Prius is a more family size car, and a little more comfortable overall on long trips than the Fit, but other than that, I probably would be just as happy with a Fit as with a Prius, except for the fact that I really want to support alternative energy sources.
catherine, I understand that is why I went with the Hybrid Civic during that time. Then I jumped on the band wagon with the GEM. Now older wiser or just plain older at 50 ;) I feel the best I can personally do is my biking to and from as many placed as I can. Cut my driving as much as I can. I joke and say I hope to be in the paper when I am 90 with my 2008 Smart, saying it has served me well. I hope I can stay happy with the little car and not buy another....oh what a dream that is, but I will try. By the way I have only driven 3,000 miles this year in the car and so far, just over 3,000 on my bicycle.
we had a prius in 07 and sold it when we moved here to NZ in 2010. LOVE LOVE LOVE the prius in so many ways. we paid $20k for our new prius. we drove A LOT so we also saved a lot of money on gas.
we miss our prius.
here, a very, very used (first generation) prius, costs about $7k, and the 2007 prius is about $20k. So, we aren't buying one. :)
instead, we are buying a nice, used stationwagon for $2500, and the gas milage is good. We plan on mostly still using the legs and public transport, and using the car for our grocery runs and for travel on weekends when we want to do that -- so low mileage.
i miss the prius!
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