Consumer Reports: One-third Say High Gas Prices Forcing Change In Car-Buying Plans
05-23-06, 10:14 AM
#1
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Consumer Reports: One-third Say High Gas Prices Forcing Change In Car-Buying Plans
Drivers are looking at gasoline/electric hybrid vehicles, others that promise higher miles-per-gallon
YONKERS, NY - May 23, 2006: Thirty-seven percent of consumers say gasoline prrices are so high they are looking at replacing their current vehicles with more fuel-efficient vehicles, mainly hybrid models, according to the latest Consumer Reports Auto Pulse Survey conducted this month.
Consumer Reports' National Research Center recently surveyed nationally representative samples of more than 2,400 men and women age 18 and up. Of those who said they may replace their vehicles, 50-percent said they are considering gasoline/electric hybrids and 38-percent are considering either flexible-fuel vehicles or diesel vehicles. Hybrids currently make up just 1 percent of total new-car sales.
Two of Consumer Reports' Top Pick vehicles this year are hybrids: the Toyota Prius (Green Car category) and Toyota Highlander Hybrid (Midsized Sport-Utility Vehicle category). Other hybrids have also received Consumer Reports' coveted "Recommended" rating. But while hybrids tend to be more fuel efficient than conventional vehicles, experts at the nation's largest and oldest independent, non-profit consumer product testing organization are reminding consumers that these vehicles' higher purchase prices may offset fuel-cost savings. Consumers can research which model is best for them by reading detailed reviews, test results and comparisons using the Consumer Reports New- and Used-Car Buying Kits, which can be found at www.ConsumerReports.org/carbuying. The Consumer Reports New- and Used-Car Buying Kits also help consumers negotiate the best price on almost any vehicle using the CR Bottom Line Price as the place to start their negotiations.
Whether or not they are considering a hybrid, consumers are looking to downsize. More than half of those planning to replace their car (55%) said they are thinking about a small car, compared to about one fifth who are focusing on a family sedan or small SUV. Fewer than one in 20 said they may purchase a luxury sedan or large SUV. The survey also found that 70 percent of Americans have accepted the price of three-dollars per gallon, but only 50 percent are prepared to pay four dollars per gallon.
"High gas prices are not just an inconvenience anymore," said Robert Gentile, director of Consumer Reports' Auto Price Services. "They are forcing people to reconsider what and how they drive, even the way they live their lives."
The survey found about 36 percent of consumers will find it harder to pay for essentials like food and health care. Thirty nine percent said they would have to change vacation plans.
Other Survey Results:
While many consumers are making efforts to reduce gas costs:
42% strongly agreed they will drive less to save gas
38% will reduce spending on restaurant meals and other entertainment
38% will drive more slowly and more smoothly in order to save gas
…few are willing to give up their cars completely:
16% will walk or ride a bicycle more
13% will carpool more
10% will use public transportation more
In addition:
* Many (43%) of those looking for more fuel-efficient transportation are young people ages 18-34 who are hardest hit by fuel costs.
* Midwesterners were more likely (39%) to consider replacement than residents of the Northeast (31%), where some of the most expensive gas can be found.
* Though nearly all of those considering a hybrid found fuel efficiency very important, fewer than 50% found tax incentives a very important reason. Other factors were good reliability ratings (82%); good owner-satisfaction ratings (74%); a desire to reduce U.S. oil consumption (70%); and a hybrid's environmental friendliness (64%).
* More than half (52%) of consumers not considering a hybrid cited generally poor performance as a reason for doing so. Higher purchase price (69%), maintenance costs (67%) and concerns about reliability (63%) were other factors.
* Nearly three quarters (72%) of consumers expected fuel prices to be higher this time next year.
* 84% of consumers changed their spending habits in the past month to mitigate higher gas prices Two thirds shopped for better gas prices
31% purchased lesser-known brand of gas
30% researched gas savings tips
28% went online to compare gas prices
source : theautochannel
YONKERS, NY - May 23, 2006: Thirty-seven percent of consumers say gasoline prrices are so high they are looking at replacing their current vehicles with more fuel-efficient vehicles, mainly hybrid models, according to the latest Consumer Reports Auto Pulse Survey conducted this month.
Consumer Reports' National Research Center recently surveyed nationally representative samples of more than 2,400 men and women age 18 and up. Of those who said they may replace their vehicles, 50-percent said they are considering gasoline/electric hybrids and 38-percent are considering either flexible-fuel vehicles or diesel vehicles. Hybrids currently make up just 1 percent of total new-car sales.
Two of Consumer Reports' Top Pick vehicles this year are hybrids: the Toyota Prius (Green Car category) and Toyota Highlander Hybrid (Midsized Sport-Utility Vehicle category). Other hybrids have also received Consumer Reports' coveted "Recommended" rating. But while hybrids tend to be more fuel efficient than conventional vehicles, experts at the nation's largest and oldest independent, non-profit consumer product testing organization are reminding consumers that these vehicles' higher purchase prices may offset fuel-cost savings. Consumers can research which model is best for them by reading detailed reviews, test results and comparisons using the Consumer Reports New- and Used-Car Buying Kits, which can be found at www.ConsumerReports.org/carbuying. The Consumer Reports New- and Used-Car Buying Kits also help consumers negotiate the best price on almost any vehicle using the CR Bottom Line Price as the place to start their negotiations.
Whether or not they are considering a hybrid, consumers are looking to downsize. More than half of those planning to replace their car (55%) said they are thinking about a small car, compared to about one fifth who are focusing on a family sedan or small SUV. Fewer than one in 20 said they may purchase a luxury sedan or large SUV. The survey also found that 70 percent of Americans have accepted the price of three-dollars per gallon, but only 50 percent are prepared to pay four dollars per gallon.
"High gas prices are not just an inconvenience anymore," said Robert Gentile, director of Consumer Reports' Auto Price Services. "They are forcing people to reconsider what and how they drive, even the way they live their lives."
The survey found about 36 percent of consumers will find it harder to pay for essentials like food and health care. Thirty nine percent said they would have to change vacation plans.
Other Survey Results:
While many consumers are making efforts to reduce gas costs:
42% strongly agreed they will drive less to save gas
38% will reduce spending on restaurant meals and other entertainment
38% will drive more slowly and more smoothly in order to save gas
…few are willing to give up their cars completely:
16% will walk or ride a bicycle more
13% will carpool more
10% will use public transportation more
In addition:
* Many (43%) of those looking for more fuel-efficient transportation are young people ages 18-34 who are hardest hit by fuel costs.
* Midwesterners were more likely (39%) to consider replacement than residents of the Northeast (31%), where some of the most expensive gas can be found.
* Though nearly all of those considering a hybrid found fuel efficiency very important, fewer than 50% found tax incentives a very important reason. Other factors were good reliability ratings (82%); good owner-satisfaction ratings (74%); a desire to reduce U.S. oil consumption (70%); and a hybrid's environmental friendliness (64%).
* More than half (52%) of consumers not considering a hybrid cited generally poor performance as a reason for doing so. Higher purchase price (69%), maintenance costs (67%) and concerns about reliability (63%) were other factors.
* Nearly three quarters (72%) of consumers expected fuel prices to be higher this time next year.
* 84% of consumers changed their spending habits in the past month to mitigate higher gas prices Two thirds shopped for better gas prices
31% purchased lesser-known brand of gas
30% researched gas savings tips
28% went online to compare gas prices
source : theautochannel
05-23-06, 12:39 PM
#2
Moderator
Either way we as humans are always going to have to purchase fuel.
Here's an idea. How can we invent a car that will propel us without any fossil fuel? There are electric cars out there but have to be plugged in to get recharged. What if we take those same electric cars, use the most technological advances from Toyota as far as using the lightweight batteries which can hold the most power. The car would have to have multiple batteries (no gasoline engine at all). The main battery would propel the car full time while the secondary batteries would constantly recharge the main battery and vice versa thus no need for fossil fuel whatsoever...
Here's an idea. How can we invent a car that will propel us without any fossil fuel? There are electric cars out there but have to be plugged in to get recharged. What if we take those same electric cars, use the most technological advances from Toyota as far as using the lightweight batteries which can hold the most power. The car would have to have multiple batteries (no gasoline engine at all). The main battery would propel the car full time while the secondary batteries would constantly recharge the main battery and vice versa thus no need for fossil fuel whatsoever...
05-23-06, 11:10 PM
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Originally Posted by Trexus
The main battery would propel the car full time while the secondary batteries would constantly recharge the main battery and vice versa thus no need for fossil fuel whatsoever...
05-24-06, 05:38 AM
#4
Lexus Fanatic
Originally Posted by Trexus
Here's an idea. The car would have to have multiple batteries (no gasoline engine at all). The main battery would propel the car full time while the secondary batteries would constantly recharge the main battery and vice versa thus no need for fossil fuel whatsoever...
You're just robbing Peter to pay Paul. Again, there is no free lunch. If you have a small gas engine to recharge the secondaries, then obviously you will have to burn a small amount of gas ( like the Honda Insight ). If you plug in the smaller batteries at night to recharge them, then of course your range is limited and the electric power plant for the utility is burning fossil fuel ( or nuclear power ) to produce the electricity to recharge the batteries. You can use solar panels, of course, to recharge the batteries, but then you have the twin problems of night and cloudy days.....and some locations at far northern and southern latitudes have nights that are literally months long in winter. Cities like Oslo, Stockholm, Helsinki, Lenningrad, Moscow, Anchorage, Edmonton, Fairbanks, etc......in winter have daylight for only a couple of hours. So no matter how you look at it, with today's technology, the twin-battery size idea will not work.
Last edited by mmarshall; 05-24-06 at 05:48 AM.
05-24-06, 08:18 AM
#5
When in Rome...
I think that when gas prices skyrocket to that of European prices, people are going to get scooters and motorcycles for primary modes of transport to work/school, but still have a car/truck/SUV for family trips, groceries, vacations, etc. We'll probably be seeing more motorcycles out on the road during the weekdays, whereas before, motorcyclists were "weekend warriors."
However, being that Americans like it over-the-top, I'm pretty sure most Americans will still end up with a gas-guzzlig hog rather than a 80 mpg scooter...
However, being that Americans like it over-the-top, I'm pretty sure most Americans will still end up with a gas-guzzlig hog rather than a 80 mpg scooter...
05-24-06, 08:19 AM
#6
Moderator
Originally Posted by mmarshall
No. This will not work. There is no such thing as a completely free lunch. First of all, no machine or system is 100% efficient...any engineer will tell you that. There will always be a need for more energy going into a system than coming out but, even if only by a small fraction. Second, if the smaller, or secondary batteries have to recharge the main battery, then what recharges the smaller batteries when THEY drain? You're just robbing Peter to pay Paul. Again, there is no free lunch. If you have a small gas engine to recharge the secondaries, then obviously you will have to burn a small amount of gas ( like the Honda Insight ). If you plug in the smaller batteries at night to recharge them, then of course your range is limited and the electric power plant for the utility is burning fossil fuel ( or nuclear power ) to produce the electricity to recharge the batteries. You can use solar panels, of course, to recharge the batteries, but then you have the twin problems of night and cloudy days.....and some locations at far northern and southern latitudes have nights that are literally months long in winter. Cities like Oslo, Stockholm, Helsinki, Lenningrad, Moscow, Anchorage, Edmonton, Fairbanks, etc......in winter have daylight for only a couple of hours.
So no matter how you look at it, with today's technology, the twin-battery size idea will not work.
You're just robbing Peter to pay Paul. Again, there is no free lunch. If you have a small gas engine to recharge the secondaries, then obviously you will have to burn a small amount of gas ( like the Honda Insight ). If you plug in the smaller batteries at night to recharge them, then of course your range is limited and the electric power plant for the utility is burning fossil fuel ( or nuclear power ) to produce the electricity to recharge the batteries. You can use solar panels, of course, to recharge the batteries, but then you have the twin problems of night and cloudy days.....and some locations at far northern and southern latitudes have nights that are literally months long in winter. Cities like Oslo, Stockholm, Helsinki, Lenningrad, Moscow, Anchorage, Edmonton, Fairbanks, etc......in winter have daylight for only a couple of hours. So no matter how you look at it, with today's technology, the twin-battery size idea will not work.
05-24-06, 09:34 AM
#7
Originally Posted by Trexus
Once upon a time people told the Wright brothers they could never build a machine that would fly...
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05-24-06, 10:52 AM
#8
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Thread Starter
Texans Fall Out of Love With Trucks, SUVs After Gasoline Soars
May 19 (Bloomberg) -- Soaring gasoline prices are coming between Texans and their trucks.
Trucks and sport-utility vehicles account for three of every four trade-ins at Gillman Honda and Gillman Mitsubishi in San Antonio, said Mike Basham, a used-car manager. Customers want fuel-efficient cars instead, he said.
``It's staggering the impact this is having,'' Basham said. ``I'm not seeing any cars in trade.''
Many residents are buying economy cars, including gasoline- electric hybrids, as gasoline approaches the record reached last year after Hurricane Katrina. The shift in Texas, where pickup- truck ownership is the highest among the eight largest U.S. states, may hurt the country's automakers as well as dealers.
``If you look at trends with trucks, Texas sets the tone,'' said Craig Eppling, a Dallas-based spokesman for General Motors Corp., the largest U.S. automaker.
GM, Ford Motor Co. and the Chrysler unit of DaimlerChrysler AG make a profit of $3,000 to $8,000 on each full-sized truck and SUV they sell, said Dennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan. They are lucky to break even on economy cars, he said.
One in four Texas drivers owns a pickup, according to Census Bureau data from 2002. The state accounts for one in every seven sales of Ford's F-Series pickups, the top-selling vehicle in the U.S.
``It's a large, heavily populated state, and consumers there like their trucks,'' Virag said. ``They like big trucks.'' Texas is the second-largest state by area and population, with 268,581 square miles and 22.5 million people, according to U.S. Census Bureau data.
Longer on Lots
The price of fuel is cutting into demand, said Jerry Reynolds, a former owner of Prestige Ford in Garland, Texas. ``It's on everybody's mind,'' he said in an interview on May 11, four days before selling his stake in the dealership. Prestige was once the largest U.S. retailer of F-150 pickups.
Gasoline at U.S. pumps has jumped 32 percent since Feb. 20 to an average of $2.947 a gallon in the week ended May 15, the U.S. Energy Department says. The record was $3.069, set in September after Katrina flooded Gulf Coast refineries.
In the five months after Katrina struck, full-sized SUVs sat on Texas lots for an average of 132 to 147 days before they sold, according to the Power Information Network of researcher J.D. Power & Associates. The average climbed from 89 days early last year. For all vehicles, the average has fallen to about 60 days from 70 early in the year.
Prius Sales Grow
GM's Chevrolet, Ford and Chrysler's Dodge had declines of 6.5 percent to 13 percent in Texas truck sales last year, R.L. Polk & Co. data show. Across all nameplates, sales fell 4.3 percent even as total new-vehicle sales rose 1.5 percent.
Trucks and SUVs accounted for 61 percent of new-vehicle sales in Texas last year and through the first two months of 2006, down from 64 percent in 2004.
Smaller vehicles are on an upswing. Sales of Toyota Motor Corp.'s Prius hybrid and Yaris subcompact helped lift sales at Fred Haas Toyota World in Spring, Texas, to a record in April, said Vic Vaughan, general manager.
The Prius, a mid-sized sedan, has more than tripled its market share in Texas since 2004 to 1.2 percent, according to the Polk data. The Yaris, a top seller in Europe that gets 40 miles (64 kilometers) per gallon on the highway, arrived in March at U.S. dealerships.
``When you're getting your nose bloodied at the gas pump the way Texans and Americans are right now, it makes it easier to debut a car as fuel-efficient as the Yaris,'' Vaughan said.
Full-Sized Hybrids
Honda Motor Co. added a small car, the Fit, to its U.S. lineup in April.
``I just barely got a glimpse of one,'' said David Kemp, Gillman Honda's general manager. ``I've gotten in 10 or 15, and they sold right when they hit.''
Nor has he been able to keep Civic and Accord hybrids on the lot. ``I don't have enough of them and can't get enough of them,'' he said. ``I don't think anybody was ready for $3 gas.''
Texans who still want a full-size pickup or SUV have choices among the current hybrids and others due soon. More buyers are likely to favor them as the technology is added to other vehicles and improves to yield fuel savings of 30 percent to 50 percent, Automotive Consulting's Virag said.
GM sells hybrid versions of its Chevrolet Silverado and GMC Sierra pickups. Two-wheel-drive models get a reported 18 mpg in city driving and 21 mpg on the highway, above the 16 mpg and 20 mpg with gasoline engines.
`I Miss My Van'
Hybrid versions of GM's Texas-made Chevrolet Tahoe and GMC Yukon SUVs are scheduled to debut in 2007, and the automaker promises a 25 percent increase in fuel efficiency. Chrysler's Dodge Durango, using the same technology, is due in 2008.
At the smaller end of the hybrid-SUV scale are the Ford Escape and Mercury Mariner. The Escape boasts 31 mpg on the highway, best in the U.S. for an SUV.
GM introduced a redesigned Tahoe this year. The pickup's sales suggest that larger vehicles still attract Texas buyers, said Michael Maroone, president of Fort Lauderdale, Florida-based AutoNation Inc., the nation's largest auto retailer.
Not Helen Hales, a pharmacy technician in Willis, Texas. She swapped her Dodge Caravan for a Toyota Corolla, cutting her fuel use by almost half.
``There are times when I miss my van,'' Hales said. ``I have a grandchild, and we could spread out and do what we wanted, but now we can go farther.''
source : bloomberg
Trucks and sport-utility vehicles account for three of every four trade-ins at Gillman Honda and Gillman Mitsubishi in San Antonio, said Mike Basham, a used-car manager. Customers want fuel-efficient cars instead, he said.
``It's staggering the impact this is having,'' Basham said. ``I'm not seeing any cars in trade.''
Many residents are buying economy cars, including gasoline- electric hybrids, as gasoline approaches the record reached last year after Hurricane Katrina. The shift in Texas, where pickup- truck ownership is the highest among the eight largest U.S. states, may hurt the country's automakers as well as dealers.
``If you look at trends with trucks, Texas sets the tone,'' said Craig Eppling, a Dallas-based spokesman for General Motors Corp., the largest U.S. automaker.
GM, Ford Motor Co. and the Chrysler unit of DaimlerChrysler AG make a profit of $3,000 to $8,000 on each full-sized truck and SUV they sell, said Dennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan. They are lucky to break even on economy cars, he said.
One in four Texas drivers owns a pickup, according to Census Bureau data from 2002. The state accounts for one in every seven sales of Ford's F-Series pickups, the top-selling vehicle in the U.S.
``It's a large, heavily populated state, and consumers there like their trucks,'' Virag said. ``They like big trucks.'' Texas is the second-largest state by area and population, with 268,581 square miles and 22.5 million people, according to U.S. Census Bureau data.
Longer on Lots
The price of fuel is cutting into demand, said Jerry Reynolds, a former owner of Prestige Ford in Garland, Texas. ``It's on everybody's mind,'' he said in an interview on May 11, four days before selling his stake in the dealership. Prestige was once the largest U.S. retailer of F-150 pickups.
Gasoline at U.S. pumps has jumped 32 percent since Feb. 20 to an average of $2.947 a gallon in the week ended May 15, the U.S. Energy Department says. The record was $3.069, set in September after Katrina flooded Gulf Coast refineries.
In the five months after Katrina struck, full-sized SUVs sat on Texas lots for an average of 132 to 147 days before they sold, according to the Power Information Network of researcher J.D. Power & Associates. The average climbed from 89 days early last year. For all vehicles, the average has fallen to about 60 days from 70 early in the year.
Prius Sales Grow
GM's Chevrolet, Ford and Chrysler's Dodge had declines of 6.5 percent to 13 percent in Texas truck sales last year, R.L. Polk & Co. data show. Across all nameplates, sales fell 4.3 percent even as total new-vehicle sales rose 1.5 percent.
Trucks and SUVs accounted for 61 percent of new-vehicle sales in Texas last year and through the first two months of 2006, down from 64 percent in 2004.
Smaller vehicles are on an upswing. Sales of Toyota Motor Corp.'s Prius hybrid and Yaris subcompact helped lift sales at Fred Haas Toyota World in Spring, Texas, to a record in April, said Vic Vaughan, general manager.
The Prius, a mid-sized sedan, has more than tripled its market share in Texas since 2004 to 1.2 percent, according to the Polk data. The Yaris, a top seller in Europe that gets 40 miles (64 kilometers) per gallon on the highway, arrived in March at U.S. dealerships.
``When you're getting your nose bloodied at the gas pump the way Texans and Americans are right now, it makes it easier to debut a car as fuel-efficient as the Yaris,'' Vaughan said.
Full-Sized Hybrids
Honda Motor Co. added a small car, the Fit, to its U.S. lineup in April.
``I just barely got a glimpse of one,'' said David Kemp, Gillman Honda's general manager. ``I've gotten in 10 or 15, and they sold right when they hit.''
Nor has he been able to keep Civic and Accord hybrids on the lot. ``I don't have enough of them and can't get enough of them,'' he said. ``I don't think anybody was ready for $3 gas.''
Texans who still want a full-size pickup or SUV have choices among the current hybrids and others due soon. More buyers are likely to favor them as the technology is added to other vehicles and improves to yield fuel savings of 30 percent to 50 percent, Automotive Consulting's Virag said.
GM sells hybrid versions of its Chevrolet Silverado and GMC Sierra pickups. Two-wheel-drive models get a reported 18 mpg in city driving and 21 mpg on the highway, above the 16 mpg and 20 mpg with gasoline engines.
`I Miss My Van'
Hybrid versions of GM's Texas-made Chevrolet Tahoe and GMC Yukon SUVs are scheduled to debut in 2007, and the automaker promises a 25 percent increase in fuel efficiency. Chrysler's Dodge Durango, using the same technology, is due in 2008.
At the smaller end of the hybrid-SUV scale are the Ford Escape and Mercury Mariner. The Escape boasts 31 mpg on the highway, best in the U.S. for an SUV.
GM introduced a redesigned Tahoe this year. The pickup's sales suggest that larger vehicles still attract Texas buyers, said Michael Maroone, president of Fort Lauderdale, Florida-based AutoNation Inc., the nation's largest auto retailer.
Not Helen Hales, a pharmacy technician in Willis, Texas. She swapped her Dodge Caravan for a Toyota Corolla, cutting her fuel use by almost half.
``There are times when I miss my van,'' Hales said. ``I have a grandchild, and we could spread out and do what we wanted, but now we can go farther.''
source : bloomberg
05-24-06, 11:15 AM
#9
GM, Ford Motor Co. and the Chrysler unit of DaimlerChrysler AG make a profit of $3,000 to $8,000 on each full-sized truck and SUV they sell, said Dennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan. They are lucky to break even on economy cars, he said.
05-24-06, 03:42 PM
#11
Lexus Fanatic
Originally Posted by Trexus
Once upon a time people told the Wright brothers they could never build a machine that would fly...
If airplanes DON'T need fuel to fly, you should go to work for the airlines.....you'll save them a WHOLE LOT of money.
Last edited by mmarshall; 05-24-06 at 03:47 PM.
05-24-06, 04:37 PM
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Originally Posted by PhilipMSPT
I think that when gas prices skyrocket to that of European prices, people are going to get scooters and motorcycles for primary modes of transport to work/school, but still have a car/truck/SUV for family trips, groceries, vacations, etc. We'll probably be seeing more motorcycles out on the road during the weekdays, whereas before, motorcyclists were "weekend warriors."
However, being that Americans like it over-the-top, I'm pretty sure most Americans will still end up with a gas-guzzlig hog rather than a 80 mpg scooter...
However, being that Americans like it over-the-top, I'm pretty sure most Americans will still end up with a gas-guzzlig hog rather than a 80 mpg scooter...
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