I Hate Prius Drivers

Don’t leap into buying new car just to save gas | courier-journal | The Courier-Journal

WASHINGTON — On television recently, I watched as a motorist said that all he could do about soaring gas prices was to close his eyes and pump.

There are actually some things you can do to reduce your costs — and fuel consumption — such as driving slower. But Consumer Reports has released a warning about one gas-saving tactic that might end up costing you more.

If you’re thinking of trading in your gas-guzzler for a more fuel-efficient ride, do the math. The savings you’re hoping for at the pump might be negated by the price you pay to get rid of your car.

The high cost of gas is changing the way some people are shopping for a car, according to a survey of Michigan AAA members. They said gas mileage was their No. 1 criteria in choosing their next car. Next came make and model, safety features, performance, seating capacity and technology features.

“While we support the downsizing trend in principle,” said Jeff Bartlett, auto deputy editor at ConsumerReports.org, “we caution consumers to look at their long-term owner costs and not rush to make a change they may later regret.”

Here’s the problem — at least in the short-term — with trading in your car for one that’s more fuel-efficient. You have to take into consideration several factors, including depreciation and finance charges.

Let’s start with depreciation or the value your car loses over time. If you’ve had your car for only a few years — three or less — it’s not worth the savings in gas to trade it in because you take a big hit on its declining value, Bartlett said.

Depreciation makes up about 48 percent of an average owner’s total vehicle costs in the first five years of ownership, according to Consumer Reports. Fuel cost averages about 21 percent of total cost of your vehicle ownership.

And then there’s the finance charge. If you’re two or three years into your current loan, you would be trading up to several more years of car payments, plus interest.

Let’s look at an example laid out by Consumer Reports. Suppose you have a 2005 Ford Five Hundred SEL V-6 sedan that gets 21 miles per gallon. You want to trade it in for a 2008 Toyota Prius hybrid, which gets 44 miles per gallon. The per-gallon mileage figures are based on Consumer Reports’ own fuel-economy test results.

Let’s assume you drive about 12,000 miles every year. At $3.75 per gallon (and, of course, this national average has changed by the time you read this), you’ll pay about $2,000 in gas this year driving the Ford, according to Consumer Reports estimates when it did these calculations. If you owned the Toyota, your fuel bill for the year would be about $1,000.

That $83 a month in savings looks darn good right now.

But wait, says Bartlett. When you calculate the total cost of ownership (depreciation, finance charges for a 60-month loan, insurance, maintenance, sales tax and fuel costs) the Toyota will cost about $9,000 to own for the first 12 months, while the Ford costs $6,000 during the same period. That’s a difference of $3,000.

Other examples of what it might cost you to downsize to another vehicle are available at www.consumerreports.org. Look for the link on the home page under “Today’s News.”

ConsumerReports.org has recently launched a “Guide to Driving Green” special section (ConsumerReports.org/fuel) with tips on how to improve fuel economy, lists of models with the best fuel economy and guides to the latest hybrids and alternative-fuel vehicles.

Write Michelle Singletary at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

Read the entire article at Don’t leap into buying new car just to save gas | courier-journal | The Courier-Journal.

Think twice before dumping old car for gas-miser — South Florida Sun-Sentinel.com Daniel Vasquez

With gas prices skyrocketing, you may be contemplating dumping your old gas guzzler for something much more efficient. But think before you rush, especially if you are financing your car and have owned it for three years or less, says Consumer Reports.

The costs associated with buying a new car (price tag, taxes, new financing, etc.) could end up much higher than the savings you’ll recoup in a new Prius or other gas-miser, said Consumer Reports.

A 2005 Ford Five Hundred SEL V6 sedan got 21 mpg overall in Consumer Reports’ testing. The 2008 Toyota Prius got 44. Assuming 12,000 miles per year at the current national average gasoline prices, the Ford will cost more than $2,000 in gas this year, while the Toyota will cost about $1,000.

But factoring in all the costs of trading in the Ford now, the Toyota will cost about $9,000 to own for the first 12 months, while the Ford costs $6,000. That’s a difference of $3,000, or $0.23 per mile.

It’s not smart to think just about fuel-efficiency. There are a lot of costs to weigh.

Read the entire article at Think twice before dumping old car for gas-miser — South Florida Sun-Sentinel.com.

Trading gas hog can eat cash — chicagotribune.com

The hidden costs of new car may cancel out any gas savings

With gasoline prices soaring, owners of trucks and sport-utility vehicles are likely asking the same question: “Should I trade my gas hog for a new fuel-efficient car?”

You’ll have to do the math, but if you do it right the answer is likely to be no from strictly a money standpoint. It’s often not worth dumping a large vehicle for a smaller one, especially a new car. You just won’t make up in gas savings what you spend on a new car, mostly because of the hidden costs.

“You have to look at the big financial picture and weigh all the ownership costs, not just the fuel-usage cost,” said Rik Paul, Consumer Reports automotive editor. “If you’re trading in early in your ownership cycle, it might not pay. You’ll take more of a hit in total ownership costs than you’ll get in better fuel economy.”

Here are considerations:

A rule of thumb: If your gas-guzzler is five years old or younger, it probably won’t pay to buy a new fuel-efficient car of similar size, according to a recent study by Consumer Reports.

Heed the hidden costs. Ignored in some consumers’ calculations is the cost of depreciation, which is the plummeting value of a new, or nearly new, car. A new car typically loses 30 percent of its value in the first year of ownership.

“Depreciation, of course, is the biggest factor,” Paul said. In fact, during the first five years, depreciation accounts for nearly half the cost of owning the vehicle. The mistake many people make is to calculate gas savings from the smaller car and compare it to the monthly payments on a new one. The math is a bit more complicated when you consider depreciation and other hidden costs.

Hidden costs II. If you’re still making payments on a young vehicle, you’ve paid mostly interest and little principal. So, you won’t have much equity in the vehicle. That means when you sell it early, you won’t get much money out of it to use as a down payment on a new one. Moreover, because fuel-efficient vehicles are in demand, you might have trouble finding one you want and you’ll have little negotiating leverage. And good luck finding a used Toyota Prius, for example.

Hidden costs III. New vehicles cost more to insure. And when you buy a vehicle, you have to pay state sales tax. If sales tax is 6 percent, for example, the tax is $1,200 on a $20,000 vehicle. That equals 20 fill-ups of $60 each just in sales tax.

An example. Consumer Reports considered trading in a 2005 Ford Five Hundred SEL V6 sedan that gets 21 miles per gallon for a new car with better fuel economy. But that turned out to be a very expensive move. If gas cost $3.75 per gallon, trading to a new four-cylinder 2008 Toyota Camry, a Camry hybrid or a Toyota Prius all cost thousands of dollars more in the first year. Even if gas went up to $5 per gallon, the numbers didn’t come close to evening out.

So the math includes more than just the price of gas and the fuel economy. While the basic hybrid Prius would save $1,000 in gasoline costs per year over the Ford, the total ownership cost of the new Prius for a year was $3,000 higher, a net loss of $2,000. The biggest factors in that gap were the new car’s depreciation and financing costs, which assumed a five-year loan term for each vehicle.

An online calculator that can help you decide is at: http://politicalcalculations.blogspot.com/2006/04/should-you-trade-in-your-gas-guzzler.html.

Read the entire article at Trading gas hog can eat cash — chicagotribune.com.

It’s all about the image, not the reality.

In My Humble Opinion » Blog Archive » The high Prius of living

So, will I make up the rather hefty purchase price of the Prius in fuel savings? I don’t think so. But who cares. I’m driving a car of the future and, for those in the know, I’m a trend-setting eco-warrior. That’s right. I’m cool, bru, even if most petrol-headed South African speed freaks think I’m nuts. And being cool is what owning a car is all about. IMHO.

Read the entire article at In My Humble Opinion » Blog Archive » The high Prius of living.

Aural Leakage: Battery Problems Short-Circuit Saturn Hybrid Sales [Alternative Energy]

In the midst of a $4/gallon-inspired run on every ride that gets more than 12 MPG, we were more than a little surprised to hear that the 2008 Saturn Aura Green Line has racked up a measly 69 sales through the end of April. Wot’s the deal? Turns out that leaky batteries, courtesy of supplier Cobasys, have sent the Saturn hybrids into the realm of vaporware at the same time GM’s marketers are touting the company’s green credentials to any buyer who will listen. The same issue has plagued the Saturn Vue Green Line, which saw sales numbers fall to 326 through April, vs. 2,683 in the first four months of 2007. Cobasys claims to have solved the problem and is now shipping defect-free battery packs. Knowing GM’s luck with timing the market, a betting man might expect fuel prices to drop back below a buck a gallon at about the same time as production ramps back up.

Read the entire article at Jalopnik Aural Leakage: Battery Problems Short-Circuit Saturn Hybrid Sales [Alternative Energy].

Prius sees surprise drop | Freep.com | Detroit Free Press BY BRENT SNAVELY

Toyota Motor Corp.’s May sales were not immune to the shifting buying patterns of U.S. consumers as the world’s No. 2 automaker reported a sales decline of 4.3% to 257,404 vehicles.

Sales of all Toyota brand cars and trucks fell 2.7% to 230,811 vehicles while sales of Lexus fell 16.6% to 26,593.

And then there was this surprise for Toyota: Sales of the Prius, its highest volume hybrid vehicle, fell 27.5% to 15,011 vehicles.

“We just didn’t have the supply, May of this year versus May of last year,” said Bob Carter, group vice president and general manager of the Toyota division.

Carter said Toyota is working with its suppliers, especially those that make hybrid batteries, to find ways to increase production to meet demand for the Prius as well as for all of its hybrid vehicles.

Still, there were many high points for Toyota in May. Sales of the Yaris increased 31.5% to 14,397 vehicles, sales of the Corolla increased 16.8%, and Camry sales inched up 2.3%.

Carter said Toyota’s total 2008 U.S. sales could be flat or lower than the record set last year of 2.6 million cars and trucks.

“What we are indicating now is we might be slightly off of last year’s record” sales, Carter said. “I am very confident that we are going to outperform the industry, but we may not get to 2007 volume.”

Read the entire article at Prius sees surprise drop | Freep.com | Detroit Free Press.

AFP: Toyota’s May US sales drop 8 percent

CHICAGO (AFP) — Toyota Motor on Tuesday reported an eight percent drop in May US sales amid a broad economic slowdown.

Sales at the Japanese automaker’s luxury Lexus division fell 20 percent to 26,593 vehicles while Toyota and Scion brand sales fell 6.3 percent to 230,811.

Total year-to-date sales were down five percent to 1,046,852.

A bright spot was the new Corolla, which posted record sales of 52,826 units, an increase of 12.4 percent over May 2007.

“The all-new Corolla really found its stride this month,” Toyota Motor Sales USA President Jim Lentz said in a statement.

“Launched amid soaring fuel prices and economic uncertainty, Corolla strikes a sweet spot for buyers seeking refinement in addition to fuel efficiency and affordability.”

Limited supplies of Toyota’s popular Prius hybrid stemmed Toyota’s ability to capitalize on a consumer shift toward fuel-efficient vehicles amid rising gasoline prices, the automaker said.

Prius sales fell 40 percent to 15,011 in May but were up 2.2 percent at 79,675 for the year. Total hybrid sales reached 26,019 for the month and 127,353 for the first five months of the year.

Read the entire article at AFP: Toyota’s May US sales drop 8 percent.