Hybrid car payback: Whom to believe
Hybrid cars just about messaging?
The best hybrid car for the money
Inevitably, consumers are driven by cost-effectiveness. While between 2 to 3 percent of consumers will buy hybrid cars to send a message, most will not.
Still, is the Mercedes S400 hybrid really the only hybrid that pays consumers back after 5 years of ownership?
That’s what a recent Canadian study found. After 5 years, a hybrid costs more than its conventional counterpart despite gasoline savings, except in one case, the S400 hybrid.
Time for Consumer Reports to go out of business?
Yet, according to Consumer Reports when factoring the “best or worst combination of performance, utility, and reliability for the money, considering all owner costs over a five-year period” the Toyota Prius and the Toyota Camry hybrid each make the Top Ten list.
So, which study is right?
I’m not sure. The wide variance found in such studies suggests that far too much subjectivity is involved in deriving such conclusions.
Nevertheless, consumers have strongly indicated that if payback isn’t achieved very quickly – such as within a year or two – then the car simply isn’t going to resonate on the sale’s floor. Consequently, many hybrid cars might be more cost-effective than portrayed in this latest study, however, further cost-effectiveness is still required if hybrids are to ever achieve mainstream appeal.
OK. I didn’t do a very good job of responding to these comments. Still, “nobody DESERVES shit” is absolutely correct, especially if we’re speaking about real change.
Thus, the real crux of the matter is can that “barebones version” of hybrids and plug-ins be manufactured for a profit?
Sadly, I don’t think so, especially at today’s gas prices. It’s just too easy to play it the other way, unless regulations mandate the change. Such a mandate, however, is almost certainly political suicide.
It seems to me we’ve painted ourselves into a very unforgiving corner. Common sense can only correct our decades of mistake if we’re welling to accept some serious pain – and that just isn’t very American these days.
Also, I responded without really reading Larry’s last comment, to which I pretty much concur. In particular I love that “buying green” point.
Sadly, most hybrid buyers are not very green, but they pretend that driving a hybrid makes up for it. Now don’t get me wrong, there are MANY hybrid buyers buying a hybrid for all the right reasons; unfortunately, I just don’t think they make up the majority of buyers.
I don’t know. I just don’t think ROI is that easy to achieve without the ridiculous extras, at least not in a timeframe that is acceptable to the typical consumer, and at least not compared to conventional vehicles.
However, I do agree, that if a much bigger scale can be envisioned, then the long term ROI is there. However, such a business model seems very anti-Big 3, and that inevitably suggest protectionism.
Larry – With all due respect, nobody DESERVES shit. And “sacrifice” is in the eye of the beholder. I agree changes in lifestyle can have a larger impact than simply buying a feel-good product, but let’s face it, we humans are generally stupid, greedy creatures. Expecting the race, or even a sizeable part of it, to change patterns of behaviour without a large outside influence is not possible. In my book, at least.
“Grab them by the balls and their hearts will follow.” Whomever spoke that stated a basic truism when it comes to humanity. So, again, I restate – make that barebones version for profit. Show people what REAL conservation can be like. And then, if they want that iPod attachment, well, here’s the pricing sheet, kiddo, and let’s see if your financing will cover it.
that’s an interesting point but I suspect that they add the extras to make up for the profit they would not get on the bare bones version.
and let’s face it.. the folks who often buy hybrids feel like they are “sacrificing” for GREEN …so they deserve the extra “goodies”
this is more of the mindset that we can “buy” “Green” instead of actually practicing it.
If we all cut our fuel usage by 1/2 – by any means at our disposal… we’d be “green” and we’d cut our dependence on foreign oil….
… just like most other industrialized countries that use 1/2 the fuel that we use .. and are less vulnerable to oil supplies as a result.
Until hybrids come as standard equipment – and cost no more than a conventional car – they will be “boutique” vehicles and here’s the proof:
How many folks would buy a hybrid car if it did not proclaim itself to be a Hybrid with a chrome badge on it?
In other words, how many folks would buy a hybrid and not care if no one else knew it and it was truly a personal choice without making a “statement” to anyone else about it?
These manufacturers could easily show ROI incentives on Hybrid/EV vehicles if they only stopped adding on the ridiculous extras to jack up the price. A car does not need leather seats and iPod holders and other such crap in order to function.
Offer a bare-bones version of the vehicle at it’s actual price and then ala carte the “cute” stuff at their respective prices for whomever wants them.
Hell, this could be a whole new angle on the industry – Boutique Hybrid/EV vehicles.
no doubt, Ford Dealer. the sales speak for themselves.
any insight into whether a different Ford model would offer more sales potential than either the Fusion or Escape hybrids?
autoofficionado-
yeah, if you’re really trying to save the gas money or the planet, i’m pretty sure that an S400 hybrid isn’t really the best solution.
It’s sad that an affiliate of AAA is actually responsible for such meaningless information. The S400 Hybrid might cost less than the S450, but it’s still a car that only those with pretty fat wallets and great credit can afford. I’m no expert, but I’m confident that Mercedes Benz gave the hybrid a lower price to make it attractive to those people who care more about prestige than saving gas money or the planet. I would not be surprised if MB’s plan is to get enough people in their hybrids now (even if it means losing money) in order to encourage future luxury-hybrid purchases. They will have to produce greener cars even if they only do so to meet CAFE standards. If they’re going to be successful and profitable, they’re going to have to make their hybrids attractive to people who think about status and/or performance when buying a car. The SLS AMG E CELL is evidence that they’re working on building green performers, but it might take some time before they can get these type of cars to mainstream consumers.
As someone who makes his living on the sales floor, I can tell you with certainty that for now at least, hybrid models are too expensive. Consumers just do not see a cost benefit.