Consumers turn up demand for hybrids

“Currently, we don’t have any on the lot because … we sell them as fast as we get them,” said Adam Rubottom, sales manager for Saturn of Springfield, which carries two hybrid vehicles: the Aura Green Line sedan and the Vue Green Line sport utility vehicle. “If we could keep them here, we would.”

The demand is higher than ever for hybrids all across the country, according to Patrick Olsen, managing editor of Cars.com. In 2000, the first year that hybrids hit the U.S. market, national hybrid sales were only “in the low tens of thousands,” he said.

In 2006, about 270,000 hybrid vehicles were sold nationally from several manufacturers, and 2007 could see as many as 350,000 sold.

The reasons for the demand, Olsen said, are twofold.

“Gas prices have to be first and foremost,” he said. “There’s a lot of people who want to save money by having a hybrid. But I also think there’s a fair number of people who want to make a statement – they’re interested in either helping the environment or cutting our dependence on foreign oil.”

For example, in 2000, Toyota only expected to sell up to 15,000 Prius models – the first hybrid in the United States – according to Tony Stubblefield, managing partner of Reliable Toyota in Springfield. Toyota’s goal for the 2008 model year is 300,000 sales.

Rubottom also said that sales are up. He estimated that about 10 percent of total new vehicle sales are hybrids, mostly the Vue, at his lot, 3130 S. Campbell Ave.

Changing perceptions

Stubblefield, whose dealership at 3521 E. Sunshine St. sells six lines of hybrids from Toyota and Lexus, said the perception of the vehicles also is changing. That change is especially apparent when American drivers compare their vehicles with those from drivers overseas.

“As (gas prices) rise, people want a car that’s more fuel-efficient, of course,” Stubblefield said, noting that at least 20 percent of his new car sales are hybrids. “But people also realize that, in other countries, smaller cars are OK to drive. It’s OK to drive something that’s fuel-efficient and not so hot and sporty.”

As hybrid technology approaches a decade on the market, fears of reliability and durability are waning, specifically in regards to the vehicles’ batteries.

“It’s often a really good idea never to buy any car in its first year, because there’s often some insidious bug that doesn’t appear until after it’s been driven for a while,” Olsen said. “But there have been hybrids around for almost 10 years, and people aren’t seeing wholesale battery collapse.”

Olsen also said he hasn’t heard much anecdotal evidence of durability issues.

“We haven’t heard much about them falling apart,” he said. “And believe me, when a car falls apart, we tend to hear about it.”

Growing faith in the new technology has helped build popular demand for hybrid versions of existing vehicles, such as the Ford Escape Hybrid, which was rolled out in 2006.

Justin Wise, new car manager for Friendly Ford, 3241 S. Glenstone Ave., said his small contingent of hybrids is a hot commodity.

“All I’ve got here is the Escape, and we sell every one we get,” Wise said, noting that the Springfield dealership receives less than a dozen of the vehicles annually.

Wise said there are tentative discussions about Ford introducing hybrid versions of other vehicles, though those would be several years down the road.

Used hybrids

Meanwhile, a market for used hybrids is slowly materializing.

Jim Wade, used car co-manager at Don Wessel Honda, 3520 S. Campbell Ave., said supply is small – his dealership had two as of Aug. 20 – but demand for used hybrids is not nearly as brisk as their new counterparts, due mostly to the cost difference between a used hybrid and a standard used car.

“There’s quite a bit of curiosity about them – I think most people are not familiar with them; they still think you have to plug it in for a power source,” Wade said, noting that many are disappointed when they realize how long it will take to make up the additional cost through fuel savings. “When they see the mileage that they actually get and the cost, that’s a discouragement.”

For example, a 2005 Honda Civic Hybrid costs about $2,000 more than its traditional counterpart and averages about 15 miles per gallon more. If gas is $2.50 a gallon, a hybrid owner would have to drive 15,000 miles per year for five years to make up the cost difference.

He added that the other arguments that drive people to buy new hybrids – environmental and political concerns – don’t really come into play much with used vehicles.

“People who go for used cars want to save money,” Wade said.

Year of the Hybrid

Year-to-date hybrid sales are up 48 percent nationwide, through July.

Here’s the breakdown:

2007 sales (through July) – 210,788

2006 sales (through July) – 142,620

Models and sales:

Toyota Prius – 110,565

Toyota Camry – 30,399

Honda Civic – 19,634

Toyota Highlander – 15,517

Ford Escape – 12,850

Lexus RX400h – 8,480

Saturn Vue – 4,600*

Nissan Altima – 2,800*

Mercury Mariner – 2,200

Honda Accord – 2,304

Lexus GS450h – 1,136

Saturn Aura – 300*

*Estimate

Source: J.D. Power & Associates[[In-content Ad]]