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2005: The Year of the Hybrid

By Joe Benton
ConsumerAffairs.com

December 29, 2005

• Tax Credits On Ford Hybrids Phasing Out • Small Car Market Faces Potentially Large Problems • Ford Plans Car That Parks Itself • Drivers Wanted: Mini Developing Electric Model • GM Invests In Electric Car Engine Plant • GM Increasingly Viewed As "Green" By Online Consumers • Honda Plans New Hybrid for Earth Day 2009 • Hybrid Technology a Presidential Campaign Issue --- • More ...

2005 was the year of the hybrid in the U.S. as consumers started paying attention to fuel economy once again and began buying the little cars in growing numbers despite shady sales practices at some dealerships, inflated mileage claims and glitches in the hybrid computer technology.

U.S. sales of hybrids more than doubled as gasoline prices briefly passed through $3 a gallon and large numbers of Americans began to see the fuel-efficient appeal of a hybrid.

Toyota began selling its Prius in North America in 2000 and the car is now the best-selling hybrid in the U.S. As of the end of November, Toyota had sold 99,000 Prius cars this year compared with 47,700 over the same period of 2004.

According to some analysts, U.S. sales of hybrids will more than double to 200,000 in 2006 and grow 500,000 a year by 2010.

Larry in New Mexico complains that ConsumerAffairs.com is not paying proper attention to the hybrid revolution. "You have plenty of articles which are critical of hybrid cars, but none which are positive," Larry writes. "What about the thousand of hybrid owners who are completely pleased with their hybrid cars, as I am," he asks?

"You might encourage fewer people to drive hybrid cars," Larry said, "which is bad for all of us. The more hybrids that are on the road, the more 'dirty' cars and SUVs that are removed from the road."

Rest assured, Larry, ConsumerAffairs.com is not anti-hybrid nor do we seek to divide or stigmatize our readers by the type of vehicle they drive. We consider hybrid technology to be an important advance that will eventually benefit just about every automotive consumer.

But our site is not a cheerleader for anything and it's not our business to promote anyone's products -- it's to help consumers make informed buying decisions. And right now, in our view, hybrids simply cost too much.

Put simply, the extra cost of a hybrid is not regained in money saved on gasoline purchases, at least not now. The market adjustment that some greedy dealers are tacking on will never be recovered in fuel savings.

Toyota and Honda dealers are adding between $5,000 and $10,000 in "market adjustments" -- price gouging in other words -- to the price of a new hybrid.

New Features

But, as with all vehicles, buyers don't make their decisions about hybrids strictly on economics. And in 2006, there'll be a lot to like about the growing list of hybrid models. The 2006 Prius is restyled, with a new grille, headlights and taillight clusters. On the inside, passengers comfort is nicely improved.

But the big change in the Prius for 2006 is in the onboard gee-wizardry. An options package will be available that includes a rear parking monitor and intelligent parking assist.

The parking monitor uses a rear-mounted miniature TV camera to show the driver the area immediately behind the vehicle. This can be overlaid with guidelines to make reverse driving easier.

The parking assist can actually park the Prius after the driver stops the car at the appropriate angle and at a safe distance from other vehicles, the system will calculate the correct course and automatically steer the car into the parking space.

All the driver has to do is control the accelerator and brake.

Unresolved Issues

Hybrids are still causing concerns in the marketplace as owners continue to encounter difficulties with dealer sales tactics and manufacturer mileage claims.

The controversy over Prius mileage continues as many owners tell us the little cars are not living up to Toyota promises and advertising.

Deborah in Louisville joins a growing number of Prius owners complaining about Toyota’s mileage claims. "I feel there was false advertising by Toyota is stating there would be 50 miles per gallon on the highway and 60 miles per hour in the city driving my Toyota Prius hybrid," she said.

"They jacked up the price $8000 from sticker stating it was a car hard to come buy and that was their price and I would actually save money on gas."

"After six months of tracking," Deborah writes, "the best mileage I ever got was 43 miles per gallon. Most often my mileage is between 30-36 miles per gallon which is no better than cars I have had in the past. I am very disappointed in (their) fraudulent advertising and the money I have shelled out only to be disappointed."

Toyota continues to insist that it just is not possible for a properly driven Prius to achieve such poor mileage and blames the results on driver error.

Carol in Evanston, Illinois thinks the Toyota analysis is nonsense and agrees with her fellow Prius owner about mileage hype in the hybrid.

"When my husband and I first bought the car in August 2005, the average mileage came in at around 55 mph, which I thought was pretty good since I drive 60 miles for work each day. But after a month or two, the mileage began to go down, and right now in December I'm hovering around 42 to 44 miles per gallon," Carol wrote.

"This is very disappointing, especially since I'm very careful to watch the display, watch my foot pressure on the accelerator, keep the A/C off unless necessary -- all the things you could do to improve the mileage. I concur that Toyota is guilty of false advertising."

Sales Horrors

Glenn of Mountain View, California, relates a dealership horror story of broken promises and market adjustment increases with a Honda hybrid. "We had a $500 deposit check and our name on the waiting list for new civic Hybrid for 3 months. We were number 6 out of well over 100 people. They called us saying it was here."

"Then they called back and said it was sold. I was furious at this point so we decided to go get our deposit check back. When we reached the dealership our sales guy told us it was a misunderstanding."

"We were told our car should be part of the next batch in a week and he then informed us that there is a $5,000 premium or markup on the hybrid making it almost $29,000," Glenn said. "My wife was so traumatized that she doesn’t even want a new car now and can’t even watch car ads on TV as they make her sick to her stomach."

Computer Malfunctions

Daphne of Encino, California, has encountered difficulties with the complex computer system that controls many of the functions in her new Lexus, which is manufactured by Toyota.

"I had my hybrid for only 3 weeks when it began to malfunction. One morning the battery was completely dead and the car had to be jump started. Two days later I experienced a very scary power surge as the car suddenly accelerated as I was parking," she writes.

As a result of an accident, Daphne’s Lexus had a cracked bumper, dented right fender, misaligned hood and a passenger door that would not open all the way. "Per Lexus instructions I had the car towed to Vista Lexus in Woodland Hills, California" she said.

Even though her car was unusable, the dealer told Daphne that she was not entitled to a loaner because she was claiming that her Lexus malfunctioned. "I was then told Lexus had been called and someone would come out to inspect the car within two days," Daphne wrote.

"As of now it has been almost two weeks of Lexus holding my car, not giving me a new case number, not giving me a loaner and yet still expecting their payment for the car."

Insurance Premium

Susan of New Hope, Pennsylvania, gets the last word on hybrids for 2005.

"With too many vehicles parked in everyone’s garage including our own and gas prices going through the roof, we decided to buy a Prius, the little hybrid vehicle made by Toyota."

"We promptly added the new car to our Allstate Insurance policy. Leave it to Allstate to take away an economic gain by charging us $1,500 per year to insure this car! (This is more than we pay to insure our gas-guzzling, expensive Toyota Sienna Van," Susan writes.

Why?

"Allstate says the parts can be costly to repair and to install."

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