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Green Gap

Hybrids might be hip, but are they saving consumers enough at the pump to compensate for their high sticker price?

WEB EXCLUSIVE

By Keith Naughton

Newsweek

Updated: 4:34 p.m. CT May 26, 2006

May 25, 2006 - With gas prices soaring and the summer driving season upon us, you'd think fuel-sipping hybrids would be all the rage on the road. And you'd be wrong. Just ask Wilmington, Del., Honda dealer Frank Ursomarso. His customers are so turned off by the pricey Honda Accord hybrid, he doesn't even keep the model in stock. "When customers come in looking for the Accord hybrid," he explains, "they either get deflected to another model or they leave." The story is similar at Kent Ritchey's Memphis Toyota dealership, where Highlander hybrids languish on the lot, while the regular version of the SUV sells briskly—for three grand less. "Not a lot of people are jumping up to pay $3,000 extra for a hybrid," says Ritchey. "For $3,000, you can buy a lot of gas."

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newsweek-article

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just another hybrids cost article

what is interesting is how it mentions how the accord hybrid and highlander hybrid are rotting on lots.

Mark my words, the Vue will change the perception of hybrids, it will be the first that folks will think is worth the money vs. a non-hybrid.

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As 31 million of us hit the road this holiday weekend prepared to suffer at the pump, we've begun to rethink the conventional wisdom that hybrids are the solution to our oil addiction. It turns out that last year's "it" car is losing some of its megawatt buzz. Despite those runaway gas prices, some hybrids are crashing at the intersection of fashionable and rational reasons for purchasing the costly gas-electric models. The price premium you pay for a hybrid—$3,000 to $8,000 above a regular model—takes years to pay off at the pump, even with $3 a gallon gas. That hasn't stopped celebs like Leonardo DiCaprio or Susan Sarandon from buying them. But for the rest of us, the cost of being hybrid hip is just too steep, and paying that premium just doesn't add up. "To reach the next group of hybrid buyers," says George Pipas, market analyst for Ford, which just resorted to zero percent financing to jack up sales of its Escape hybrid, "you've got to have a price premium that pencils [adds up]."

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newsweek feedback from readers

wow, you should see how defensive the ecoweenies get

“Obviously you don’t drive a hybrid and did not thoroughly research your article,” writes Theresa, who did not give her hometown, “because you mentioned nothing about the state and federal income-tax incentives that offset the slightly higher price … I got a total of $6,000 back on my state and federal taxes and get an average of 50 miles to the gallon. I carpool 70 miles every day and my Prius is comfortable for five adults.”

Betsey, who did not give a hometown, says Naughton is missing the larger issue. “The point is to save gas and to reduce greenhouse gases—not just to save a few dollars at the pump,” she writes.

Steve from Paducah, Ky., disagrees. “You are absolutely correct in regards to hybrids,” he writes. “I was going to buy a hybrid Highlander and, after looking at the numbers, decided it didn't make economic sense.”

“I bought my Honda Civic Hybrid two months ago … and I love it!” writes Dave, who did not give a hometown. “I did not pay over $20,000 [and], everyone who asks me about it is very envious and is considering buying one … I think you are steering people wrong.”

why do ecoweenies and liberals get so upset when someone presents a vailid counter view point?

or, are they just pissed they blew thousands extra on a car?

Edited by regfootball
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But many of those green-leaning initial hybrid buyers have been wealthy and well educated—in other words, the consumers who are least affected by high gas prices. If your motivation is to pinch pennies at the pump, though, there are actually regular cars that deliver better gas mileage than some hybrids.

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In terms of economy and overall practicality, a 5-spd Cobalt/ION, Corolla, Civic, Focus, or TDI Golf/Jetta would be your wisest investment, especially when you buy a used one and drive your already-paid-off SUV less instead of trading it in on a hybrid. Doing that makes absolutely no sense.

Also, you don't get those tax credits now i.e. at the time of purchase. For people actually affected by higher gas prices, the 'hit you back on the flip side' tax benefits likely don't carry that much weight.

But for most people - get a tune up, combine trips, avoid excessive idling, and use air conditioning wisely.

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The success of the Prius is in its ability to convince people who would otherwise drive a gas-guzzling SUV or luxury car to try something more economical. Obviously these people wouldn't be interested in a Cobalt or Echo, and the Prius is a stylish alternative that has all the features of a more expensive car (Keyless Go, reversing camera, ESP, Bluetooth, nav...)

The Prius and MINI are probably the only two classless cars in the US.

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newsweek feedback from readers

wow, you should see how defensive the ecoweenies get

why do ecoweenies and liberals get so upset when someone presents a vailid counter view point?

or, are they just pissed they blew thousands extra on a car?

The "ecoweenies" are also presenting a "vailid counter view point," the tax breaks, the emissions, the green image, and so on.

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newsweek feedback from readers

wow, you should see how defensive the ecoweenies get

why do ecoweenies and liberals get so upset when someone presents a vailid counter view point?

or, are they just pissed they blew thousands extra on a car?

LOL, because that's their nature....

You're supposed to LIVE BY THEIR RULES and NOT QUESTION WHY, yet, THEY seem to pride themselves on "SAYING that they're different and questioning EVERY aspect of how we live....

It's the most backwards LOGIC I've ever witnessed... PREACH TOLERANCE and PEACE and EVEN FREEDOM, then take away opposing peoples FREEDOM and FORCE them to LIVE the same way you do because your cannot TOLERATE their OBVIOUSLY INFERIOR opinions/lifestyles... And guess what, if you don't obey, they'll sick SIERRA or ELF or PETA on you and resort to violent acts... So much for peace and tolerance ehh?

DETROIT WAS RIGHT!!!!!!!!!! HYBRIDS WERE and STILL ARE a WASTE of TIME AND MONEY, yet the ANTI-DETROIT media used them (Or their lack-there-of) as a TOOL to screw over GM and Ford and SNOW the public into believing that they're the answer to the world's problems.

It's just too bad that people were dumb enough to believe all that rhetoric for going on 3 years now.

AND of course, you'll never see the words "DETROIT WAS RIGHT" in the press.... If anything they're looking for another "SILVER BULLET" argument to fling at the big 2 since this one is LOSING GROUND.

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The success of the Prius is in its ability to convince people who would otherwise drive a gas-guzzling SUV or luxury car to try something more economical. Obviously these people wouldn't be interested in a Cobalt or Echo, and the Prius is a stylish alternative that has all the features of a more expensive car (Keyless Go, reversing camera, ESP, Bluetooth, nav...)

The Prius and MINI are probably the only two classless cars in the US.

LMAO.... Except it didn't...... The ONLY thing that might've influenced SOME drivers was the MEDIA tirad and/or gas prices

The Prius is and WAS just that: HYPE

Yep, the prius is "CLASSLESS" alright..... It doesn't have much class.

But seriously, we ALL can classify the drivers of BOTH of those cars VERY EASILY. They are FAR from classless, just like EVERY other car on the road.

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Funny, you have that same tone, plus included name calling...

sumbwody cowled my pweeus a bad name, mommy! i haff to wite a wetter to editor!

whining ecoweenies, those extra thousands do more for you in a 401k........

Edited by regfootball
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