Consumer concerns of hybrid vehicles

In the past few weeks there have been a few interesting studies regarding hybrid vehicles. Last week, I mentioned the R. L. Polk & Co. study which found that 97 percent of consumers have heard of hybrid vehicles and 78 percent would consider buying one; however, cost would still limit the majority from taking such action.

Another study - if you can call it that - by Kelly Blue Book cited by Money notes that "a majority of consumers are skeptical of hybrid technology even though they feel that hybrid vehicles, which use electric motors in addition to gasoline engines, are likely the future for the American automobile."

So what is the cause of hybrid skepticism according to Kelley? "The two most important causes of consumer skepticism, according to the survey, were the potential costs of servicing a hybrid vehicle and maintenance over its lifetime."

Nonetheless, while Jack Nerad, the editorial director and executive market analyst for Kelley Blue Book, thinks that consumers still need convincing of the viability of hybrid cars, the supply of hybrids still trails demand.

More important, the 425 individuals comprising the Kelley survey, while somewhat skeptical of hybrid technology today, are still very optimistic for the future of hybrids. In fact most believe they will replace conventional vehicles.

Besides, change always brings fear, but there is little evidence - if any - to demonstrate that hybrid technology is anything but reliable. Recent studies of the Toyota Prius, for example, show that almost every Prius owner would buy another Prius.

Still, the early adopters of any technology always take some risk when helping to usher new technology into the mainstream. The success of the Toyota Prius; however, bodes well for all Toyota hybrids, as Toyota's Hybrid Synergy Drive is pretty much the same in the Prius, Highlander hybrid, Lexus RX400h hybrid, and the not-to-far off Camry hybrid.

The Honda Civic hybrid also has a solid track record.

The Accord hybrid and the Ford Escape hybrid are very new to the market, but have been reliable thus far.

While the long term life of the hybrid battery is a justified concern for consumers, most hybrid batteries are guaranteed for 8 to 10 years. Yes, replacing the hybrid battery in 10 years could be expensive, but if hybrids continue to increase in popularity, hybrid battery production will also significantly increase. This will not only add to supply, but create better batteries, which could increase the value of older hybrids - making them more efficient - instead of decreasing their value.

Early adoption and risk go hand in hand, but risk can also offer unexpected rewards. For example, should terrorism ever lead to decreased reliability of foreign oil, the fuel savings of hybrids could instantly diminish all skepticism.