Car Buyers More Interested in Gadgets Than Fuel Efficiency

According to the results of a J.D. Power & Associates study released yesterday, hybrid technology vehicles rank pretty high among consumers interest. In fact, 72% of people asked said they were "definitely/probably" interested in hybrid technology. However, once they were told that this technology would add about $5000 to the price of their vehicle, the number if still interested buyers dropped to 58%.

What ranked higher than the fuel efficiency of a hybrid though? Blind-spot detection technology at 76%, and back-up assist at 74%.

Oh great, that's just what the world needs... technology to help incompetent drivers pay even less attention to what they're doing behind the wheel.

Here's what I think of that:


Unless they're installing KITT in my dash, I don't not want my car thinking for me.

But I digress.

I have to wonder where they got the $5000 "average" from though. When I first read the report it seemed awfully cheap compared to the hybrid premiums I've seen, but I figured those were the price differences in American dollars for the American sold cars. So, I did a quick check across a few of the cheaper hybrids in Canadian dollars and came up with the following:

-Honda Civic Sedan:
Conventional: $19,490.00 (w/AC+automatic)
Hybrid: $26,350.00
Difference: $6860.00

-Toyota Camry:
Conventional: $23,400.00 (w/AC+automatic)
Hybrid: $30,660.00
Difference: $7260.00

-Toyota Prius vs Toyota Corolla: (since the Prius doesn't have a conventionally propelled equivalent I'm comparing it against the Corolla, which is Toyota's closest offering)
Corolla LE: $19,900.00 (w/AC+automatic)
Prius: $29,500.00
Difference: $9600.00

Toyota Highlander:
Conventional: $36,900.00
Hybrid: $41,075.00
Difference: $4175.00

Chevrolet Malibu:
Conventional: $22,995.00
Hybrid: $26,995.00
Difference: $4000.00

Chevrolet Tahoe LT:
Conventional: $47,155.00
Hybrid: $66,125.00
Difference: $18,970.00

That's an average premium of nearly $8500.00. While the MSRP for cars in Canada is always higher than in the US, their estimated $5000.00 for the added cost of a hybrid still seems a little low.

One interesting detail I noted while compiling those numbers was that while a Civic Hybrid costs nearly $7000 more than a similarly equipped conventional Civic, the fuel savings are in the range of 30%. If a Civic owner drives 25000 kms per year (~15000 miles) that's nearly $1000 in savings each year at current fuel prices. The Chevy Malibu, on the other hand, only costs $4000 more for the hybrid, but the fuel efficiency is less than 8% better. That's only about $250 per year saved. Honda's hybrid premium pays for itself in 7 years, while Chevrolet's takes about 16 years. (I really hope those buyers are choosing a hybrid to "make a statement", and not to save money...)

Sadly, of all the different features and options mentioned in the survey, clean diesel ranked last. Why? I'm not sure. I mean, who wouldn't want 50+mpg from a conventional (read: simple & uncomplicated) drivetrain?

As Mike Marshall, J.D. Power & Associates director of automotive emerging technologies, said:

One explanation for this may derive from a lack of education with the technology. Many consumers cannot differentiate between clean diesel and traditional diesel fuel—which in the past had a negative connotation with unpleasant vehicle emissions. As consumers become more educated in the benefits of clean diesel through increased product offers launching later this year, interest in the technology may increase.

I suppose the European companies that are starting to make this technology available in North America have along road of re-education ahead of them. The masses are still stuck on the old stereotype of diesels being noisy, smelly, and generally a nuisance. It's a stigma that may take a while to be rid of.

You can read the full report HERE.