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A report says it looks like less than half hybrid car owners are trading-in towards another alternative fuel vehicle these days.
Car buyers are trading in hybrid and electric cars for SUVs at a higher rate than ever before, according to a new analysis from Edmunds.com.
The publication’s analysis offers a look at how today’s gas prices are drawing hybrid and EV owners toward gas-guzzling vehicles at an accelerated pace over recent years.
According to numbers published by Edmunds.com, about 22 percent of people who have traded in their hybrids and EVs in 2015 bought a new SUV. This number represents a sharp increase from 18.8 percent last year, and it is nearly double the rate of 11.9 percent three years ago.
Overall, 45 percent of this year’s hybrid and EV trade-ins have gone toward the purchase of another alternative fuel vehicle, down from over 60 percent in 2012.
Never before have loyalty rates for alt-fuel vehicles fallen below 50 percent, stated Edmunds.com.
“For better or worse, it looks like many hybrid and EV owners are driven more by financial motives rather than a responsibility to the environment,” said Edmunds.com Director of Industry Analysis Jessica Caldwell. “Three years ago, when gas was at near-record highs, it was a lot easier to rationalize the price premiums on alternative fuel vehicles. But with today’s gas prices as low as they are, the math just doesn’t make a very compelling case.”
To underscore the point, Edmunds calculates that at the peak average national gas price of $4.67/gallon in October 2012, it would take five years to break even on the $3,770 price difference between a Toyota Camry LE Hybrid ($28,230) and a Toyota Camry LE ($24,460). At today’s national average gas price of $2.27/gallon, it would take twice as much time (10.5 years) to close the same gap.
EVs and hybrids accounted for 2.7 percent of all new car sales in the first quarter of 2015, down from 3.3 percent during that same period last year. The share of SUVs, meanwhile, has increased from 31.8 percent in Q1 2014 to 34.2 percent in Q1 2015.