Most hybrid owners wouldn't buy another
A recent survey, many hybrid owners say the gas savings aren't enough to offset the premium price.
This post is from Michael Koretzky at partner site Money Talks News.
The deadline to file your taxes is Monday, and a new survey by eBay says 21% of Americans who expect a refund will spend at least part of it on a new or used car. But will they buy a hybrid?
Toyota announced last week that U.S. sales of the Prius hit an all-time high -- 28,711 sold in March. While that's 54% more than the same month a year ago, it's still puny compared with the Toyota Camry, which had sales of 42,567 last month.
Now a new survey suggests that most hybrid owners will go back to gas-only vehicles. "While the selection of hybrid models in the U.S. has more than doubled since 2007, only 35% of hybrid vehicle owners choose to purchase a hybrid again," says automotive research firm Polk.
The only good news is for Toyota: "If repurchase behavior among the high volume audience of Toyota Prius owners isn't factored in, hybrid loyalty drops to under 25%."
That's bad news for the Honda Civic Hybrid, the Ford Fusion Hybrid, the Lexus HS 250h, the Hyundai Sonata Hybrid and more than a dozen other models. But how can hybrid owners be unhappy in this era of nearly $4-a-gallon gasoline? Part of the reason may be that the survey was conducted in 2011, so prices weren't as high as they are today. But another reason may be purchase price vs. fuel savings.
"The lineup of alternate-drive vehicles and their premium price points just aren't appealing enough to consumers to give the segment the momentum it once anticipated," says Lacey Plache, chief economist for car-pricing site Edmunds.com. Plache says that's especially true "given the growing strength of fuel economy among compact and midsize competitors." (Post continues below.)
In other words, standard gas-powered cars are getting more fuel-efficient at lower sticker prices. "Hybrid, electric car owners must wait years for savings," read a recent headline in the Charlotte Observer. The newspaper reported that "opting for models that promise better mileage through new technologies does not necessarily save money."
That's bad news for Chevrolet, which makes the all-electric Volt -- a car Republican presidential candidate Mitt Romney insulted in December, telling a Boston radio show, "The Chevrolet Volt? . . An idea whose time has not come."
Of course, tastes can change on a dime -- especially as gas prices climb. The Polk study concedes that, while prices now have had "little impact on hybrid segment loyalty," that can change "as fuel prices continue to rise."
Regardless, Polk says, car companies should keep making hybrids, because they also drive customers to their more traditional vehicles. "For example, in 2011, 60% of Toyota hybrid owners returned to the market to purchase another Toyota," Polk reports. "In the case of Honda hybrid owners, more than 52% of them stayed with the Honda brand."
If you're in the market for a hybrid, Cars.com named its top 2012 hybrids just last week. Here are the best in the five car categories (excluding SUVs and trucks). Note that two are Priuses:
- Subcompact: The 2012 Toyota Prius C ($18,950) gets 53 mpg city/46 mpg highway
- Compact: The 2012 Honda Insight ($18,350) gets 41 city/44 highway
- Midsize: The 2012 Toyota Prius ($24,000) gets 51 city/48 highway
- Family sedan: The 2012 Toyota Camry Hybrid ($25,900) gets 43 city/39 highway
- Luxury car: The 2012 Infiniti M35h ($53,700) gets 27 city/32 highway
More from Money Talks News and MSN Money:
I hate to admit it, but Romney is right. The right answer is hydrogen.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
If you worry about money after the streetlights come on, these actions may help you rest easier.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'