Study Challenges Idea of Hybrid Auto Buyers as Typical Early Adopters - GreenHybrid

Jason · #1 (**permalink**) 04-26-2007, 11:50 AM

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Unlike classic technology “early adopters,” people who purchased Prius automobiles did not feel that they paid a premium for the privilege of owning an environmentally friendly car. While the environmental benefits were a major consideration for them, they also saw clear financial benefits from their purchase, says a new study by the Topline Strategy Group, a leading technology consulting and market intelligence firm. The study, “Why People Really Buy Hybrids,” studied Prius buyers to understand the true motivations of people who buy hybrid cars and thereby discern the hybrid industry’s future prospects in light of recently falling sales.

http://www.theautochannel.com/news/2...23/045123.html

bwilson4web · #2 (**permalink**) 04-29-2007, 12:06 AM

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Segment 2: The Buyer Calculated the ROI Differently than the Experts According to our study, 16% of Prius buyers stated that the primary reason for buying the Prius was to save money on gas. Given the various analyses that show hybrids do not save enough on gas to pay for their higher purchase price, there might be a tendency to view these people as making an uninformed choice. However, while analysts present their findings as hard facts, they are in fact very much up for debate.

All analyses regarding the costs and benefits of a hybrid purchase are based on assumptions, and reasonable people can make very different
assumptions. As a result, whether or not hybrids make financial sense is very much in the eye of the beholder. That was certainly the case for James Moore, who commutes 45 miles each way to work three days a week. His 2004 Prius has over 60,000 miles on it and he plans to drive it until it wears out.

“I heard people say that the upfront costs for the Prius were too high, but I was willing to risk it. I feel the benefits outweigh the upfront costs.”

A cash flow analysis of hybrid ownership costs bears out James’ opinion and reinforces the view that reasonable people can conclude that hybrids make economic sense. . . .

Absolutely!

One of the curious aspects of hybrid skeptics is they concede that hybrid taxis make sense. Yet the skeptics can not conceive that anyone else might have a similar driving profile that makes the hybrid a good buy. For example, they claim 15,000 miles per year yet I'm doing about 22,000 miles per year. Their problem is an average of 15,000 miles per year is the middle between those driving less and many who are driving a lot more. They offer their advice even to those who do drive more.

Bob Wilson

AshenGrey · #3 (**permalink**) 04-29-2007, 04:56 AM

It also assumes that everyonepaid a "premium" for theirhybrids. I paid $19,900 for my HCH. In Maryland, hybrids did not pay sales tax that year. The government gave me a $2,600 tax deduction. I pay half price for parking at the municipal garage. And I get 42 MPG.

Where's the "premium",I wonder?

Earthling · #4 (**permalink**) 04-30-2007, 10:55 AM

Lots of journalists scoffed at hybrids, especially the Prius, when gas was down to $2/gallon. Now gasoline is around $3/gallon, higher in some places.

The price of gasoline, a crucial factor in estimating whether hybrids make sense, is very volatile and hard to predict. I'm betting it's going higher and staying higher.

And even if I'm off on the economics on my purchase of a Prius (I'm comfortable with my choice), there is still our over-reliance on foreign oil, and our emphasis on the Persian Gulf. What's that costing us?

Harry

centrider · #5 (**permalink**) 04-30-2007, 07:28 PM

I bought my Prius last year in Feb. Gas prices were down, availability was 3 weeks and I firmly told the sales manager I would not pay a premium.

I got the full 3250.00 fed tax credit and the state's car pool stickers. Much as I loved my 95 Saturn SL2 (donated. I got 1750 for that. No hassle over trade in) I was glad to get my Prius.

I went to Honda, but the sales person kinda flipped me off. Also the Honda's back seat did not fold down. I carry a bike in my Prius, as I did in my Saturn.

I've never had a car which, after 1500 miles the oil was clean. It is in the Prius.

To bad Prius isn't union.

mapson4 · #6 (**permalink**) 05-03-2007, 07:25 PM

I look at the improved mileage as a personal gas price discount. I moved from a 27 mpg Honda CRV to a Camry hybrid getting 43+ mpg. Effectively my cost of gas is ~$1.80 rather than the $2.85 posted. Good thing given the recent gas price increases.

Also note that the savings are tax free or effectively 1.45x. Over the normal 10 years I keep a car, this plus the car pool I am in will save me $8000 versus the normal 4 cyl Camry or Accord, in addition to the tax credit.

Earthling · #7 (**permalink**) 05-04-2007, 05:13 AM

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Originally Posted by mapson4

Also note that the savings are tax free or effectively 1.45x. Over the normal 10 years I keep a car, this plus the car pool I am in will save me $8000 versus the normal 4 cyl Camry or Accord, in addition to the tax credit.

Good points. Whatever the premium is for a hybrid can be looked at as an investment. The returns are in the form of savings in fuel costs, and these returns are tax free, which makes them effectively even larger. Returns on other investments are shared with the tax man.

I also keep a car for 10 years or longer, so I'll get the full benefit of return on my investment, without having to complicate things by trading cars in, paying additional sales tax, etc.

Harry

livvie · #8 (**permalink**) 05-04-2007, 11:07 AM

My purchase of my HCH I had all to do with what would give me the bigest bang for the buck and had little to do with my enviromental impact. "Helping" the environment, as little as my car does, was a bonus side effect. I would say getting a job closer to home had a greater impact to helping the environment than anything technology can do.

mkaresh · #9 (**permalink**) 05-07-2007, 08:01 AM

Very true, livvie. The way most American metros are laid out is certainly a major contributor to our energy use. I work out of my house, and enjoy having no commute. Except I still have to run the kids to and from school.

Better was before I had kids when I lived in Chicago. Didn't even have a car for a couple of years. I say this as an auto enthusiast. As much as I enjoy driving, there's nothing fun about commuting.

centrider · #10 (**permalink**) 05-07-2007, 08:16 AM

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Originally Posted by mkaresh

Very true, livvie. The way most American metros are laid out is certainly a major contributor to our energy use. I work out of my house, and enjoy having no commute. Except I still have to run the kids to and from school.

Better was before I had kids when I lived in Chicago. Didn't even have a car for a couple of years. I say this as an auto enthusiast. As much as I enjoy driving, there's nothing fun about commuting.

I grew up in ChiTown and still have family there. That city is laid out for pub transport.

However, that said, I couldn't wait to give up public transport and get into a car. Waiting for a bus in Dec, Jan Feb in the 50's was not a lot of fun.

L.A. on the other hand is not.