Hybrid Hype and Consumer Acceptance
Created October 16, 2005, at 10:01 am by Anonymous
The Hybrid myth is nothing more than bunk and scam today!
Your article on SUVs and Hybrids fails to mention that the current cost of purchasing a Hybrid SUV are cost ineffective. The idea of hybrids is terrific but the automobile manufactures are overpricing them to the general consumer market. Tax credits of up to $3,000 are available for cars delivered after Jan. 1, 2006 -- but only to the first 60,000 vehicles each automaker sells. In fact the IRS will be reducing the deduction on Hybrid cars
“The original purchaser of a qualifying hybrid gas-electric car may deduct $2,000 for the year the vehicle is first used, if that year is before 2006. In 2006, the deduction is scheduled to drop to $500.” Quoted from the IRS Webpage.
This tax deduction will be phased out by 2007. It has been estimated that it would take an individual 21.5 years in gas savings to pay back the extra money that you have to pay on purchasing a Hybrid vehicle. Gas mileages that are quoted by automobile manufacturers are incorrect and subject to much debate. Another issue that is not reported by the press is battery life and battery failure issues. If you plan to keep the vehicle for longer than 5 years or trade it in (buyers beware), you may have to replace the batteries at an exorbitant cost! Yes, there is a charge/ recharge limit on batteries that has to be factored in.
The auto industry has to set goals on reducing the cost of hybrid technology to bring it in line with current costs that the average consumer can afford. The $3,000 to $4,000 premium added to the cost of a car is a big bite out of any ones check book when considering purchasing a hybrid. The incentives in form of tax breaks have to be improved by the federal government for the consumer purchasing a hybrid vehicle. Automobile manufactures have to reduce cost of hybrid and add more incentive for the general consumer market before this technology will be accepted.
General advice to those who plan on purchasing hybrids is don’t rush out and buy one before all the facts are weighed in!
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6 years ago
General advise is don't rush out and make false assumptions based on one factor. There are numerous factors that make buying a hybrid worthwhile for many people.
Want proof? Look at how well they are selling. All those people must think it's worthwhile. And before you say we've just been suckered by the manufacturers' propaganda and have made poor investments, I can say with some authority that hybrid buyers are, for the most part, the most informed car buyers in the marketplace.
6 years ago
Randy, easy on that Hummer salesman. Things are getting real bad for them now.
6 years ago
Well with any relatively new technology and I say that because a lot of people ask me still if I need to get special gas or plug it in etc... There's a premium for early buyers of tech as more people buy them it WILL bring down the cost. It's been that way since as long as I can remember. I think nearly ever buyer realizes there a premium for hybrids. So what's your point that someone who cannot afford $20K-$30K hybrid don't buy one?
Batteries are covered for a minimum 8 years or 80K. So if the media is not covering battery failure where are you getting your info on this?
There also a bonus about a hybrid that usually goes unmentioned but I like the fact I go to the gas station 3 times less than my previous car an SUV. With gas so high I hate to wait 20-40 minutes for the cheapest gas in town to save 10 cents a gallon. I've be saving over an hour of time of my life filling up gas. How much is your time worth? Mine is definitely worth more than $2.40 an hour for gas. 12 gallons saving 10 cents per 30 minute wait time.
6 years ago
I paid about $18,500 for my new '04 HCH.
A similarly loaded Civic EX went for about $1k less.
In under 2 years time I've reclaimed more than the premium, among other benefits.
I plan to drive the car over 300,000 miles and probably will never replace the battery.
If you are looking for a vehicle that gives the most dollar for mile value then you are correct, the hybrid is not the way to go.
There are new cars to be bought in the $10K range that advertise mid 30's MPG which would deliver a much better $/mile value.
But you get one of those stripped down econo boxes that is all you have- A stripped down cheap econo box that gets mediocre mileage.
6 years ago
I have been reading your responses...some people hae more money then sense. Joe Average Consumer is where you need to target your sales. Not at the yuppie crowd who jump on any new band wagon driving down the road. SHOW me the proof.
6 years ago
The price differential between the most expensive non-Hybrid Civic (EX), and the Hybrid Civic, is a whopping $6000 CDN up here in Canada.
There is approximately 1 liter/100 km difference in highway fuel consumption between the two. That's roughly $1 for every 100 km. Drive it an average of 25,000 km per year, and the savings are $250 annually. That's a 24 year payback in the Land of Rust. Not even legendary Honda reliability is up to that!
I guess if you have enough disposable cash to make an environmental statement, hybrids are great, but they make poor economic sense to the average buyer. At least up here in the Frozen North. YMMV in the US where there are at least SOME tax incentives (there are NONE up here).
Mike G
6 years ago
If you are considering that you can also save yourself time because hybrids get to use the HOV lanes. If you save 10 minutes a day in a commute, thats almost another hour of quality time you have for yourself.
I also believe that we are sending a message to the automakers. MAKE CARS MORE ENERGY EFFICIENT. And I believe that they are listening. More manufactures are producing hybrid vehicles. 2 years ago, there were only 2 manufactures producing hybrid vehicles. Now how many have them or will have them soon??? And look at the varity of them. You can pick a car, a truck or SUV and soon a mini-van. Even Mercedes is getting into this "small" market.
So is this a fad? I don't believe so. I think this is just the begining of something bigger. I even hear there is a website devoted to hybrid vehicles.
6 years ago
Hello Mike:
"The price differential between the most expensive non-Hybrid Civic (EX), and the Hybrid Civic, is a whopping $6000 CDN up here in Canada."
I wonder why things are that bad up there in Canada?
If you go to http://automobiles.honda.com/ you'll see the price for a HCH MT is $21.850.
The base EX is $18,260, $3,590 difference.
But the HCH is not a base car, its fully loaded.
Option up the EX with the accessories available for it that come STD on an HCH and the total is $21,789, the price is almost identical.
Even then there are many features not available on an EX that is STD on an HCH so you end up with a lesser car with less MPG.
People have been comparing a fully loaded vehicle to base models for years and complain there is a price difference.
6 years ago
Got to love when people like "Show Me" and "Consumer Beware" (I think you the same person?) make bold and completely bogus statements and then disapper when presented with the "FACTS" !!
6 years ago
I am no detractor of Hybrids, but I would much rather stick with my girl's '05 civic that gets 35 mpg in town and 40 on the highway. I haven't seen a lot of people promoting the civic hybrids as cost effective versus the gas only civics....i simply wouldn't want one because the gas only civics are so good on fuel economy. Give me a hybrid that consistently gets 70 mpg in town, then I will be impressed.
6 years ago
Check out: http://www.greenhybrid.com/compare/mileage/car/955.html
This guys averages nearly 75 MPG in a Prius.
Several others with MPG in the Upper 60's and low 70's in both Prius and Honda Civic.
Sure same car and some people only get 40's..it is all how you drive.
6 years ago
Keep in mind that this is just my opinion.
I personally think hybrids have only one good thing about them. They are much more environmentally friendly than standard gas or diesel cars. Now I am not saying that you don't get great gas mileage. I am more than certain you do.
I did a little research and some calcultaions on hybrids. I found that the number one reason people buy a hybrid is to save money on gas. That's logical thinking at it's best right there. Only problem is, you should NOT buy a hybrid to save money overall. If you work out the math, you will find that over the course of 130,000 miles, a hybrid actually cost more in total than their standard counterparts.
This isn't always true, but usually is.
I also compared other cars to hybrids. For example; A Kia Rio cost $20,553 over the course of 130,000 miles. A Honda Insight cost $24,924 over the same lifetime. The Rio also outperforms the Insight. I am by no means saying that a Kia Rio will knock the pizo out of the Insight, but it runs better generally speaking (top speed, 0-60).
No, I am not a saleman or spokesman for Kia. I have nothing against hybrids either. I think that as the technology and price of manufaturing improves, hybrids will be an easy choice. I also like the enviromental friendliness of hybrids.
In short, I am just saying that if you want to use less gas and lower emissions, etc, etc.; then by all means go buy one. However, if your goal is to save money then a hybrid is not always an economical choice.
6 years ago
You are right that you won't make your money back on gas savings. You can make up for it in other means. One, the resale is quite good compared to a non-hybrid vehicle. Two, if you live in a state where there are HOV lanes (which are less congested), then you save yourself time. And doesn't time cost more than gas (even at $5 a gallon)? Third, you save time again, because you visit the pump less than other people. Fourth, for some, the peace of mind knowing that they are doing something to reduce our dependency on foreign oil and reducing their emissions.
6 years ago
Dan wrote:
"A Kia Rio cost $20,553 over the course of 130,000 miles. A Honda Insight cost $24,924 over the same lifetime"
What are you basing your calculations on?
6 years ago
Many people here would not buy the non hybrid version of the same car. In most cases, buying the smaller hybrid was an attemp to just save on gas when ever posible. Many also have a 2 car family but one of those cars is the "family" car and driven the most. Just about everyone I know that has 2 cars and not alot of money has the bigger car for family and a smaller car to save on gas. Now that filling up the gas hog is costing $60.00 plus a pop, families have no choice but to pile in the small car (now family car).
It is just stupid to compare the price of the non hybrid version to the hybrid but many non owners continue to do so. The news media seems to run this behavior in the ground and turn off people who are considering a hybrid, this is reckless.
This is my situation and I think many others also who have bought a hybrid: My main family car was a Ford Explorer (I still have it), it gets 15mpg. My second car was a Ford Focus (21mpg) which I sold and bought the FWD Escape Hybrid. The focus sat in the driveway and was only use to drive to work. The Explorer was driven 20,000 miles a year and the Focus was driven 10,000 miles a year. I would never drive the Focus to save 5-8mpg over the Explorer with the family but if it saved 15mpg (twice the Explorer) I would if I could. Same holds true with a non hybrid Escape because it doesn't get 30mpg (the V6 is the hybrid equal only gets 18mpg). It would cost me more in gas to go from a focus to a V6 Escape.
Now I have 15,000 miles in just 9 months on my Hybrid. It has changed my driving habits and I punched out 44.32mpg the other day. My average is about 36mpg from the time I bought it. Most FEH owners are not hypermilers and don't care to be and thats just fine because 30mpg is great in a 5 passenger SUV. The FEH is my Family car now and I am saving over $200.00 a month on gas, I get a Tax break this year and don't forget the 8yr warranty I got on the hybrid system.
With todays gas prices, I could not afford not owning my FEH and its paying for it self.
6 years ago
The federal government has proposed TAXing hybrid cars as a means of coverning short falls in its highway budget programs. Governement ---AKA Congress and the Senate fail to see the importance of hybrid technology as a means of removing us from foreign OIL dependence. Hybrid technology research and developement, alternative fuels and more efficient power plants in automobiles is ESSENTIAL. Big OIL and failing American Automotive industry is going to bust the United States Economy if there is not a national plan for energy independence established. All the major development in new automotive technologies is off-shore and the American automotive industry is suffering. Something has to change real fast. Hybrids is a start...but professional politicians in Washington are totally out of touch with everything.
6 years ago
Can't agree more Guy. The need to put people to work to generate more tax money gives these yahoo's the excuse to squeeze the only things that help this Country. The bribes and kickbacks for contracts are finally starting to come out now and its time Americans think when they vote.
The Country is being ran by WARLORDS who promote their cronies and retaliate against those who speak out.
When they look to destroy the Hybrid incentive, its time for them to get lost.
Gary
6 years ago
Only when the analysts compared the Toyota Prius to the Toyota Camry LE
did the hybrid ownership experience prove financially advantageous -- but
barely. Over the first five years of ownership, the Camry is expected to cost
just $81 more than the Prius.
However, when comparing the costs of the other vehicles, Edmunds.com
analysts determined that gas would have to cost at least $5.60 per gallon for
hybrid drivers to break even if they drove 15,000 miles per year over the five
years. Alternately, they could break even if they drove at least 37,000 miles
per year at the current average gas price of $2.28 per gallon.
Below are the break-even points for hybrid ownership for each vehicle in
the study.
Model Fuel Would Have to Or a Driver Would Have to
Cost ... Exceed Annual Mileage of ...
Ford Escape Hybrid
(vs. Ford Escape XLT AWD) $5.60 37,000
Honda Accord Hybrid
(vs. Honda Accord EX V-6) $9.20 60,000
Honda Civic Hybrid
(vs. Honda Civic LX) $9.60 63,000
Toyota Prius
(vs. Toyota Corolla) $10.10 66,500
Toyota Prius
(vs. Toyota Camry) $2.28 15,000
6 years ago
Jake, there are zero staff at Edmunds which think hybrid cars are a good idea, they are quite biased tward large, powerful and fast vehicles.
Their numbers are severely skewed.
I regained any price premium in my HCH vs a comparable Civic EX within the first year, when gas was about $1.25/g.
6 years ago
Jake, give it up, people who have the money to buy hybribs step down in size for the most part to save gas. We don't compare the lesser vehicle for price we compare how much we will save on gas compared to the same price gas hog were driving now. I wouldn't step down for only 5mpg. Would you?
Gary
6 years ago
I just saw this forum and have to say that we simply cannot afford the new hybrids, though I'd love to own a Honda Insight. We've pretty much given up on buying any new cars for the foreseeable future because they're simply over-priced and hybrids just don't win any ECONOMIC arguments when I consider my budget. Instead of new cars, we buy 7-year-old, sub-100k mile vehicles for cash. They're usually only a couple of thousand dollars. Example: our (new to us last year) '98 Ford Escort which gets 36/41 mpg. I can buy a lot of expensive gas for this vehicle for a couple or three years for the difference in price I'd pay for my Insight "dream car", and be able to transport 4 people as well!
6 years ago
Gary G is correct. I keep seeing the comparisons between small cars and their hybrid counterparts. I am looking to buy a hybrid prius or civic to drive rather than my corvette or my wife's navigator. There is where the savings may occur.
6 years ago
Comparing a Corolla to a Prius results in gas costing over $10.00 per gallon for the prius to make finacial sense. Do you not consider this to be
a significant factor in your decision of which car to buy?
6 years ago
I am comparing the prius to a navigator or corvette, not a corola. I like the style of the prius. I guess we buy not only what we need, but also what we want.
6 years ago
I am concluding that most Hybrid buyers are choosing hybrids over traditional cars for reasons other than finacial. I find no gratification in spending more money for less performance. This explains why the typical Hybrid buyer is politicaly left. "It feels good but makes no sense".
6 years ago
So if your decision to buy a hybrid is not purely a financial one, you are a liberal. That's an interesting theory. But I am buying a hybrid, have many reasons for doing so, don't expect an immediate or significant financial gain but vote conservative.
It could be I am an exception or it could be that politics have nothing to do with it and it relates to personal values and prinicples.
Dan
6 years ago
The root of "Conservative" is "Conserve". All good Conservatives should consider hybrids to be built for them. Wasn't it your old, conservative grandfather who taught you to turn the lights of when you leave the room?
Granted, the left side has generally been first to embrace them and perhaps are more willing to shell out the extra $$$ to be early adopters.
I, too, consider myself a staunch conservative.
I can't fault Toyota for letting the market drive the price and right now, they are selling every Prius they can make, even after they add a premium.
Eventually, we'll see hybrid prices come down below pure ICE (Internal Combustion Engine) cars because of the simple nature of the electric drive train.
6 years ago
Jake, your belief on political leaning is not correct.
Recenty Greenhybrid took a pole:
http://www.greenhybrid.com/discuss/what-is-your-political-leaning.1989.html
Both groups, conservatine and liberal fared about equal.
When I bought my hybrid car it wasn't a step down, but a step up.
It replaced a 94Dodge 4cyl that did 16-18MPG and falling apart.
I wanted the nicest fuel efficient car they had, so I got the Civic Hybrid. It's vastly nicer than my old Dodge and almost tripple the MPG.
6 years ago
Hummers rock no joke
6 years ago
The future is here,solution for a true and fully electri
hybird technology is finally avaiable.
Battery pack is no longer required, an absolutely unique
technology commercially feasible, patent pending in
principal countrys of the world.
In response to the world's continuous search for an environment friendly solution for future energy concept,
this development hails as a breakthrough in the hybrid
electromobile technology
We recoqnize that research and development efforts
requires significant investment by industry to create
commercially viable products. As such only seriously interested manufacturers should contact :
Thank you,Regards
macmohan
6 years ago
Something many people seem to be forgetting is that the decision of whether or not to buy a hybrid has to consider the probabilities of different gasoline prices over the coming decade or so. A new vehicle can cost $30,000. If one buys an 18 mpg car and the price of gasoline is $6 in a year or two or three, cost of operation and resale value become problems.
No one knows what will happen, but it seems far more likely that gasoline prices will double or triple over the next few years than that they will be cut to half or a third...
I am breaking even with my Escape hybrid, but I drive 25K miles/year and a lot of those miles are in conditions where the hybrid makes a big difference. I also have a bit of an insurance policy, in that if gasoline prices shoot up, I am not stuck with a car nobody wants.
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