One-Third of Consumers Looking at More Fuel-Efficient Cars
Dealers Report Four-Cylinder Sales Accelerating Briskly
Thirty-seven percent of consumers say gasoline prices 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.
CR's 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.
Recent sales figures from dealers around the country support the survey results, with car buyers shifting towards four-cylinder vehicles and away from V-8s, Automotive News reported.
A combination of high fuel prices and a flood of new four-cylinder vehicles in dealer showrooms contributed to the shift.
Sales of vehicles equipped with four-cylinder engines grew from 30.1 percent of the market in the first week of January to 35.4 percent in the week ending May 14 while sales of eight-cylinder vehicles slipped from 25.6 percent to 21.6 percent, according to the Power Information Network, which collects data from thousands of dealer transaction records each week.
Dealers say Toyota's new Yaris is selling briskly and the four-cylinder Camry is also a big seller in recent weeks.
Hybrids Not the Only Answer
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 the 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.
Even if they are not 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 with about one fifth who are focusing on a family sedan or small SUV.
Fewer than one in 20 said they might 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 would 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.
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