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Americans still unwilling to pay for hybrid technology, survey shows

Americans still unwilling to pay for hybrid technology, survey shows

Nelson Ireson June 24th, 2008 Nelson Ireson By Nelson Ireson Author June 24th, 2008
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December 31st, 1969 Fuel prices are a hot topic among American motorists, and ways to reduce bills at the pump are equally popular, but new information shows paying in advance for savings down the road is not an appealing solution for today's buyers. The added up-front costs of hybrid vehicles turned as many as a third of respondents to a recent poll away from the technology, opting instead to spend their money on similarly-featured but less expensive standard cars. The poll, conducted by J.D. Power and Associates, shows 72% of buyers were interested in hybrid cars before being told of the added initial cost. Once they were given a figure of $5,000 over the cost of a similar non-hybrid car, however, only 46% of respondents were still behind the partially-electric cars, reports Automotive News. The results are somewhat surprising, as earlier studies have shown that as fuel prices rise, the period for recovery of the price premium placed on hybrid cars shortens. Perhaps the J.D. Power survey results best illustrate the gap between American car buyers' perceptions and the realities of the long-term costs of car ownership. The survey was taken to evaluate the importance of a range of technological advancements in cars and their effect on buyer perceptions of desirability. One primary trend noted by the poll was the increase in popularity of information and entertainment systems as buyers that grew up in the nascent computer era come of age and begin buying cars. A marked shift from a focus on safety features in past years occurred in this year's results, mostly among the 30-years-and-younger crowd. The same market forces are pushing more advanced features into less expensive cars as well in an effort to capture the younger market.
Americans still unwilling to pay for hybrid technology, survey shows

Americans still unwilling to pay for hybrid technology, survey shows

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Fuel prices are a hot topic among American motorists, and ways to reduce bills at the pump are equally popular, but new information shows paying in advance for savings down the road is not an appealing solution for today's buyers. The added up-front costs of hybrid vehicles turned as many as a third of respondents to a recent poll away from the technology, opting instead to spend their money on similarly-featured but less expensive standard cars.

The poll, conducted by J.D. Power and Associates, shows 72% of buyers were interested in hybrid cars before being told of the added initial cost. Once they were given a figure of $5,000 over the cost of a similar non-hybrid car, however, only 46% of respondents were still behind the partially-electric cars, reports Automotive News. The results are somewhat surprising, as earlier studies have shown that as fuel prices rise, the period for recovery of the price premium placed on hybrid cars shortens. Perhaps the J.D. Power survey results best illustrate the gap between American car buyers' perceptions and the realities of the long-term costs of car ownership.

The survey was taken to evaluate the importance of a range of technological advancements in cars and their effect on buyer perceptions of desirability. One primary trend noted by the poll was the increase in popularity of information and entertainment systems as buyers that grew up in the nascent computer era come of age and begin buying cars. A marked shift from a focus on safety features in past years occurred in this year's results, mostly among the 30-years-and-younger crowd. The same market forces are pushing more advanced features into less expensive cars as well in an effort to capture the younger market.

Tags: Gadgets, Industry, Trends

Posted in: News, Hybrid


Comments (6 total)

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  1. By Gus #1, Posted: 6/24/2008

    That's because no one has an extra $5,000 to spend on a car right now, and another $5,000 6 years down the road when the tech starts breaking...

  2. By Alan #2, Posted: 6/24/2008

    Not sure about USA price, but here in Australia the cost difference is still too great and you'll need to cover lots of miles to recover the initial cost.

    One thing i was thinking as i read this, those people calculating the time it taks to recover the initial cost of purchasing, i wonder if they discounted the future cash flow. I mean by not buying a hybrid now, i not only save myself $5000, those money can also be put in bank and earn me interest.

  3. By stewie #3, Posted: 6/24/2008

    Toyota finally go the hint when they decontented the Camry Hybrid & Honda seems wise to be bringing to

  4. By bambam #4, Posted: 6/25/2008

    Its true when you put it that way, But if you are just deciding on a car base on price. let's say I was going to buy a $30,000 car. The choices are Toyota Camry and a Honda Civic Hybrid and others. Put it this way and you wouldn't know what the difference is. They all cost $30,000, except one is a hybrid. This is the way it should be compare to and not as such as a small hatch vs a large car hybrid and which one would save you more fuel. it won't matter if the customer is going to spend $30,000 on car. he or she is better of with the hybrid then the other cars with the same cost.
    The problem is that we can't get the hybrid or the electric cars price low enough to suit lower end customers. There is not enough option out there. Theres only one or two brands or models.

    Just remember that people would always NEED a suv or sport car or family car and they will always spend their targeted price but can anyone give them an electric or hybrid option in their range.

  5. By bambam #5, Posted: 6/25/2008

    Since we are here, how many people buy cars for extras(hybrid)?. I thought one of the major choices involve in buying a car is the price. I am currently looking for a four door coupe sport car NOT a sport sedan. any suggestion? There is only one Mazda RX8.
    A great fan of the Rotary engine but nothing else out there that can even fit my stupid requirement. Subaru WRX is a sedan and so are the luxury ones(Bentley or Audi). Any suggestion?

  6. By melman #6, Posted: 7/1/2008

    Folks, the issue with hybrids is not only the initial outlay of cash, but maintenance of the vehicle down the road. Battery technology, even though it's come a long way is nowhere near where it needs to be to make the hybrid a viable vehicle for everyone. What the sales weasels don't tell you is that in 5 years you're going to shell out anywhere between $8 and $10K per set of batteries installed including disposal fees for the old set.

    Personally, I'd rather put my money on a 2.0L diesel that gets at least 50 mpg. Too bad they won't sell those in the states.

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