Supposed "HYBRID PREMIUM"

djasonw · 01-15-2006, 09:05 AM

The thing that annoys me the most is the press constantly touting the fact that there is a premium to pay for purchasing a hybrid. Why don't they ever talk about the premium to pay within car models? As an example, the difference in price on a Grand Cherokee with a V6 and a V8. How about a Chrysler 300 with the standard 6cyl vs the Hemi. Back in June 2003 I sent a check for $500 to a dealer in PA to reserve a fully loaded silver Prius. In late October of that year I got the call that it was in. I picked it up Nov 8th and never looked back. I paid list price less $500 (forgot the exact amt). To this day, I still look forward to driving this car. Amazing. So... why do you think not much attention is given to non-hybrid premiums versus hybrid premiums. More examples are the Camry 6cyl v 4cyl or the Accord 6cyl v 4 cyl. Bottom line is that I do not even consider that I paid a premium for my Prius.

Kiloran · 01-15-2006, 09:13 AM

The "premium" is the increased incremental cost of the hybrid components over what it would take to make the car without them.
It is not a myth invented by the press and is acknowledged by Toyota, et. al. as a number they intend to reduce by half.

maggieddd · 01-15-2006, 09:17 AM

Quote:

Originally posted by Kiloran@Jan 15 2006, 09:13 AM
The "premium" is the increased incremental cost of the hybrid components over what it would take to make the car without them.
It is not a myth invented by the press and is acknowledged by Toyota, et. al. as a number they intend to reduce by half.

[snapback]190456[/snapback]

That's stupid to call it a premium. Do you say you paid a premium on automatic transmition?

mdmikemd · 01-15-2006, 09:18 AM

Quote:

Originally posted by djasonw@Jan 15 2006, 09:05 AM
The thing that annoys me the most is the press constantly touting the fact that there is a premium to pay for purchasing a hybrid.

Well, it's not hurting sales...at least for Toyota. I'm not sure if there's any effect for Ford or Honda.

Kiloran · 01-15-2006, 09:18 AM

Also, if you read the relevant sections of the Energy Policy Act of 2005, the act makes it clear that the tax credit is intended to provide incentive to purchase hybrid vehicle by covering the additional cost of the premium.
It ended up with the calculations being quite complicated but the spirit of that part of the act was to offset this premium.

Kiloran · 01-15-2006, 09:19 AM

Quote:

Originally posted by maggieddd@Jan 15 2006, 10:17 AM
That's stupid to call it a premium. Do say you paid a premium on automatic transmition?

[snapback]190458[/snapback]

Yes. When comparing with a manual, why not?

mdmikemd · 01-15-2006, 09:19 AM

Quote:

Originally posted by maggieddd@Jan 15 2006, 09:17 AM
That's stupid to call it a premium. Do say you paid a premium on automatic transmition?

[snapback]190458[/snapback]

Right on, it's an option I wanted! No offense to those of you who get leather, but I always looked at that as a waste of a few thousand dollars...for myself.

maggieddd · 01-15-2006, 09:23 AM

Quote:

Originally posted by Kiloran@Jan 15 2006, 09:19 AM
Yes. When comparing with a manual, why not?

[snapback]190462[/snapback]

I don't see headlines saying PREMIUM for AUTO Transmition with a negative spin to it, as if it was not worth getting it because you can get manual for less money.

Kiloran · 01-15-2006, 09:28 AM

Quote:

Originally posted by maggieddd@Jan 15 2006, 10:23 AM
I don't see headlines saying PREMIUM for AUTO Transmition with a negative spin to it, as if it was not worth getting it because you can get manual for less money.

[snapback]190465[/snapback]

Are we discussing whether it's correct to use the word "premium" to describe the incremenal additional cost or are we discussing whether the press is using the premium to present the Prius in a less positive light?

For my part, I was only defending the use of the word as correct and not the content of unfavorable press.

maggieddd · 01-15-2006, 09:32 AM

Quote:

Originally posted by Kiloran@Jan 15 2006, 09:28 AM
Are we discussing whether it's correct to use the word "premium" to describe the incremenal additional cost or are we discussing whether the press is using the premium to present the Prius in a less positive light?

For my part, I was only defending the use of the word as correct and not the content of unfavorable press.

[snapback]190470[/snapback]

well, djasonw's post talks about press touting about premium on hybrids

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Looking to upgrade the JBL "premium" speakers...	Kev1000000	Audio and Electronics	135	10-06-2007 01:32 PM
The so-called "hybrid premium"	rtn	Prius Main Forum	34	04-11-2007 11:29 AM
Honda Recalls Civic Hybrid<img alt="" src="chrome://easygestures/skin/xLink.png" style="border: 0px none ; margin: 0px; padding: 0px; display: inline;	daveleeprius	Other Cars	1	02-12-2007 01:19 PM
Toyota Asking for a "premium" $2.500 in Hycams	Jay105000	Prius Main Forum	12	08-01-2006 07:39 PM
Newbie Questions re Prius "premium price"	a030145t	Prius Main Forum	26	07-22-2006 07:54 AM

01-15-2006, 09:05 AM	#1
djasonw Senior Member Join Date: Jul 2004 Posts: 340 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	The thing that annoys me the most is the press constantly touting the fact that there is a premium to pay for purchasing a hybrid. Why don't they ever talk about the premium to pay within car models? As an example, the difference in price on a Grand Cherokee with a V6 and a V8. How about a Chrysler 300 with the standard 6cyl vs the Hemi. Back in June 2003 I sent a check for $500 to a dealer in PA to reserve a fully loaded silver Prius. In late October of that year I got the call that it was in. I picked it up Nov 8th and never looked back. I paid list price less $500 (forgot the exact amt). To this day, I still look forward to driving this car. Amazing. So... why do you think not much attention is given to non-hybrid premiums versus hybrid premiums. More examples are the Camry 6cyl v 4cyl or the Accord 6cyl v 4 cyl. Bottom line is that I do not even consider that I paid a premium for my Prius.

01-15-2006, 09:13 AM	#2
Kiloran Join Date: Aug 2005 Posts: 1,225 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	The "premium" is the increased incremental cost of the hybrid components over what it would take to make the car without them. It is not a myth invented by the press and is acknowledged by Toyota, et. al. as a number they intend to reduce by half.

01-15-2006, 09:18 AM	#5
Kiloran Join Date: Aug 2005 Posts: 1,225 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Also, if you read the relevant sections of the Energy Policy Act of 2005, the act makes it clear that the tax credit is intended to provide incentive to purchase hybrid vehicle by covering the additional cost of the premium. It ended up with the calculations being quite complicated but the spirit of that part of the act was to offset this premium.