Filed under: Car Buying, Trends, Economy, Hybrids/Alternative, Green, Crossovers/CUVs, Ford, Honda, Lexus, Toyota
Big hybrids sitting on dealer lots...
Seems that
smaller and less-expensive hybrids like Toyota's Prius and Honda's Civic are hot sellers, but bigger hybrids like the
Lexus RX400h and Honda's Accord hybrid are turning out to be slow movers.Apparently, relatively cheap smaller hybrids are a no-brainer for consumers concerned about high gas prices, but the bigger and more expensive hybrids, like Ford's Escape and the Toyota Highlander hybrid SUVs, are sitting on dealers' lots.
While it's natural for economy car buyers to be attracted by, well, economy (in gas mileage as well as sticker price), USAToday points out that the bigger hybrids also sell at a bigger price premium over their non-hybrid versions. The Highlander hybrid, for example, sells for a whopping $6,590 more than its six-cylinder gas-only counterpart, while a Civic hybrid is just $2,890 more than a similar standard model.
Customers don't seem to be dealing well with the bigger price gap for bigger hybrids - the Lexus RX400h is sitting on dealers' lots for an average 32 days, while the RX330 moves in an average of 27 days (for the record, both durations are more than respectable-- it's the fact that the hybrid sits longer that's the thing). And the Prius? It sprints off the dealer's lot in an average of just 8 days.
[Sources: USA Today, Toyota]
Reader Comments (Page 1 of 3)
Matt 7:29AM (3/22/2006)
It's interesting to me that the 400h is also on the "hot car list" according to Edmunds. Either this says that the regular RX330 sells with incentives, or edmunds list arbitrarily favord hybrids somehow.
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Charlie 7:49AM (3/22/2006)
Here's my question. Why or where did the Honda Civics' go from 25 years ago. I keep asking folks "do you remember?" and the majority say "oh!yeah."
Those cars got 50 mpg no sweat. They had a couple models (coupe and hatchback) and were not bad looking (for the time)
Now we have these "hybrids" which, obviously cost more due to the regular inflation standards this country seems to operate on and they do not get the same mileage nor I'd bet, will last as long.
The old Honda Civics were a carburatored motor and then we got the "more effiecient" fuel injection...HA
Anyone else seem to get the irony here? Seems the more advanced we get, the more it cost the average consumer and really, we're getting less.
Just my opinion.
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Micke 8:06AM (3/22/2006)
IIRC there is about one year queue for delivery on RX400h here in Sweden...
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Manolo 8:38AM (3/22/2006)
To say that 32 days is bad compared to 27 days when the car is $7K more expensive is stupid.
It just caters to a more upscale clientele and -naturally- it takes longer.
IMHO 5 days more for the 400h is a real feat, not a problem...
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Steve C. 8:43AM (3/22/2006)
I think I understand why they aren't selling well.
Count me amongst those who've bought an Accord Hybrid and may live to regret it. I got an incredible deal (pricewise) -- the price was virtually the same as an Accord EX. But was it worth it?
Of course, the Accord Hybrid real-world fuel economy is in the range of 28-31 mpg -- very sensitive to average speed. So the "savings" in fuel cost is minimal -- not even close to be cost-justified, especially if you compare to a 4-cylinder Accord with virtually identical economy.
Plus, as you say, the higher-end hybrids only come with one option -- everything -- so the sticker price is much more than just the hybrid "upgrade". You get leather, power this and that and maybe even a navi unit as "standard".
I still say that in another 3-4, maybe 4-5 years, hybrids will fade away in favor of clean-burning diesels, which have a huge financial advantage over hybrids in the long-term-cost-of-ownership race.
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Roger Rodrigues 8:43AM (3/22/2006)
The RX 330 got 19/24 mpg. The RX400H gets 21/22 mpg. No wonder the hybrid is not seling as fast!
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Matt 9:14AM (3/22/2006)
Manolo, you also have to realize that the RX400h is in much much lower supply than the RX300. So being that it is a hybrid (which is supposed to be in high demand...and is in many cases), it's $7,000 more for what is basically a comprehensive hybrid and technological package on a luxury SUV (where options that cost a lot of money are typical), and it's supplied in much smaller numbers than it's non-hybrid sibling, it should technically have lower turnover.
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DriftPunch 9:21AM (3/22/2006)
A Lexus is not an economy vehicle, and to a lesser extent, most other SUVs aren't either. Small hybrids are appealing because of super high mileage, and 'slightly' higher cost than normal. Most SUV hybrid buyers are likely jumping on the conservation bandwagon while not creating a material change in their behavior or lifestyle. In other words, image...
Those who wring out every possible mile out of a gallon have my respect. Those who add hundreds of pounds of luxury items (along with needless four wheel drive), then puff their chests out and claim to be green, not so much...
Some efforts at conservation are just silly (cough, 0W-20, cough). Want to impress me turn the AC off... Want to really impress me, turn it off in your home...
Don't get me wrong, I'm not a member of the Sierra Club. It just strikes me as silly that someone will claim a proud green status due to their prius, then return to a 3800 foot McMansion cooled to 68 degrees on a 95 degree day.
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Mina 9:33AM (3/22/2006)
The sales logic behind hybrids amuses me. Honda wants me to pay $8000 more to get 5mpg better mileage and own a car with many more items to maintain and likely break? The Honda Accord with a diesel engine sold in Europe gets 39mpg!
I'll stick with my Volkswagon diesel that gets an average of 48mpg.
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G. Snyder 9:34AM (3/22/2006)
"Some efforts at conservation are just silly (cough, 0W-20, cough). Want to impress me turn the AC off... Want to really impress me, turn it off in your home..."
This is simply wrong. At highway speed, a car is more efficient with the windows up/AC on than AC off and windows down.
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klaatu 9:51AM (3/22/2006)
This does not bode well for the big 2 1/2 - yet another issue for them to consider.
Why?
Because they are of the opinion that the first hybridized vehicles they sell need to be trucks and SUVs.
The American public are moving away from trucks and SUVs.
Simple math. Gas is going to be $3 a gallon OR MORE this summer. They're suddenly seeing friends get cars like the Prius and being able to do 90-95% of what a mid-sized SUV can do, and get 3 times the real-world mileage.
People are slowly smartening up. "Too soon old, too late smart" indeed.
Fat-mobiles are passe' and Prius-like cars are the future, whether they are Atkinson cycle gasoline hybrids as the Prius, diesel hybrids, microturbine hybrids (which could conceiveably use any flammable liquid fuel, whether it be crude kerosene from coal, E85, diesel, bio-diesel, gasoline, peanut oil - whatever).
Then of course there are the sons-of-Prius, i.e. the much touted fuel cell vehicles "fuelled" (NOT the correct word but one we'll no doubt be stuck with) hydrogen. Assuming the "hybrogen" economy ever happens.
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Alberto 10:05AM (3/22/2006)
Ok, now Im confused. Last week autoblog posted the 10 ten selling cars in the US, and the Lexus hybrid models and Ford Escape hybrid were listed there. Part of the selling criteria was specifically how long the models lasted in dealer lots and how close sales prices remained to MSRP. This article now says larger hybrids like the Lexus and Ford escape arent selling. So which is it autoblog?
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Michael Karesh 10:05AM (3/22/2006)
Anyone who thinks a 32-day inventory is bad doesn't have a clue. Nearly any manufacturer would kill to consistently average twice that.
The Accord and perhaps the Highlander have been the only semi-flops. The RX 400h seems to sell well. The problem isn't price. The problem is that people buy hybrids because they find them interesting. It doesn't make sense to buy an interesting vehicle that looks boring. Hence the Prius, which looks and feels unique inside and out, sells well. And the flashy Lexus sells well. And the Accord and Highlander don't.
A guy once emailed me trying to decide between a WRX STI and Jetta GLI. He ended up buying a Prius. What gives? He didn't want to drive fast, but he wanted a cool car. The Prius fit both criteria.
My reviews of these cars:
Accord Hybrid: http://www.epinions.com/content_183834283652
Highlander Hybrid: http://www.epinions.com/content_197896998532
Prius: http://www.epinions.com/content_119504866948
For feature-adjusted price comparisons between hybrid and non-hybrid versions, click on my name.
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MikeW 10:13AM (3/22/2006)
The first year accord hybrid (2005) is a joke, no spare wheel, skinny oversized tires 215/60 16, no sunroof, etc.
That was fixed for 2006, but the mileage took a hit(apparent or actual)
The RX400 sales will drop like a rock when people realize the RX350 is just as fast and cost $10,000 less. and that can pay for up to 5 years of gas.
and a RAV4 with the 2gr-fe V6 is faster than the RX400 and costs half as much.
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goat 10:17AM (3/22/2006)
It's probably true that hybrid pickups and SUVs aren't going to be big sellers, but I don't think SUVs and especially pickups are going to disappear anytime soon.
I'll be interested to see what the real world numbers are on the GM hybrid pickups vs. the Duramax version. Although for delivery trucks (lots of stop-and-go), the hybrid version should have an edge.
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Doogs 10:17AM (3/22/2006)
Uh...wouldn't the domestics KILL for 32 days on lot?
The average time to sell right now is 58 days. For big SUVs like the Suburban and Expedition, make that 94 days.
http://www.caranddriver.com/article.asp?section_id=30&article_id=10761
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C Clark 10:44AM (3/22/2006)
The Honda Accord Hybrid was mentioned as getting 28 - 31 mpg. I have a 3 month old Lexus GS 300 that gets 30+ highway and is averaging 26.5 mpg in Houston Texas city driving. The hybrid initial cost is hard to recover w/ mpg as poor as the Honda Accord.
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Steve 11:06AM (3/22/2006)
Lexus Hybrids are not about the option's cost or gas-savings, they are all about the image.
In urban areas another factor might be being able to use HOV lanes.
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RaslDasl 11:07AM (3/22/2006)
I have to agree with Michael Karesh. I would consider the Prius based solely on its exterior and interior design, without a hybrid powertrain. In fact, if there was a sport model with fatter tires and better performance I would be about sold, even with lousier mileage.
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Sean 12:20PM (3/22/2006)
#5, I get 23-25 in town with my 400h and 26-30 on the highway (depends a lot on the wind).
not the 21/22 you quote...
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