question about "premium" paid for hybrids

The so-called "hybrid premium" is a myth, a comparison of apples to oranges, and based on the fact that a Honda hybrid does cost more than the same model with a conventional drive train.

Every manufacturer wants to make money, and will charge what they can. But there are other considerations as well, including competition and the desire to grab market share.

What the Prius "should" cost is a matter of opinion. If you look at the quality of the car and the features it has, and then look at other cars that have the same or similar features, and take differences in quality into account, then in my opinion, Toyota has priced the Prius below its value, in order to compensate for consumer reluctance to buy a new technology, and in order to grab market share and establish Toyota as the premium hybrid car maker. Just as the brand name Kleenex has replaced the generic term "facial tissue," Toyota wants people to think of Toyota as the hybrid car maker. To do this they need to establish their brand in the market, and I believe they have under-priced the car. I don't think they are pricing below cost. But I do think they are cutting their profit margin narrower.

Nobody talks about the "stereo premium" when you order a car with a better stereo, or the "air conditioner premium" when you get a car with a/c, though both those options add to the price.

The "hybrid premium" is a propaganda tool used by companies like GM, and their apologists, so they can try to argue that hybrid is not really worth the cost, when in fact a hybrid drive train is more reliable, more efficient, and better for the environment than a conventional drive train.

If you need the most economical transportation, buy a good clean used econobox. If you want nice features and the best quality available, buy a Prius. No car will "save" you money. A car is an expense, not a "saving." But the Prius is worth the money you pay for it, providing that you can afford the expense. No car is worth the cost if you cannot afford it.

 

I'd answer the question, but there's this deceased equine I'm busy beating over here.

 

What hybrid premium?

When we were looking for a new vehicle, our most important criteria was for a car or truck that was easy to load and unload small boxes.

Our previous vehicle was a full size pickup truck with a top to keep out the weather. This vehicle was too big for our needs so we wanted to downsize.

The top three vehicles that we narrowed down to were.

Colorado pickup: $23,600
Pontiac Vibe: $22,700
Prius: $21,200

We picked the least expensive one with all the features that we required.

 

Well Stated

Very well, stated, Daniel.

 

+1

 

What is the hybrid premium? It is a package of the following:

1) Much more efficient drivetrain (37% tank to wheel)
2) Much lower emission (CO2 and NOx compare to modern diesels in Europe)
3) Smooth acceleration (probably smoother than 8 speed automatic)
4) Responsive acceleration especially for passing (no downshifting nor torque converter lag)
5) Responsive braking (regen brake starts as soon as you let go the accelerator and there is no lag to heat up the brake pads. Battery starts recharging while slowing down the car and it comes at the speed of electricity... no mechanical/hydraulic delay)
6) Lexus Quiet when the gas engine is off (even quieter from the outside)
7) Smart, efficient, variable speed electric Climate Control AC/Heater (not another dumb belt driven AC)
8) Smart Key Entry with Power button... the Lexus style (Get in and drive off in less than 10 secs)
9) Futuristic / distinctive look and the most Aerodynamic performance (looks are subject but you gotta love the extra performance it contributes during highway passing even beating the 2.0 liter engine)
10) Coolant Thermo Bottle storage (Say goodbye to warming up the car in the morning)
11) A joy to drive in pure electric (especially with the standard informative touch screen, MFD)
12) The feeling of the MPG sky rocketing in the highway traffic congestion

If you can put a price on them, that's your "hybrid premium".

 

I'm lovin' this thread!
+2 usbseawolf2000

 

Go with what your budget can afford. If you want a Prius and can afford it, go get it. If you budget is more limited, then you need to decide if a used car is for you, or a smaller new car is what you desire.

In the end, from a budget perspective, you need to consider overall operating costs. Someone could give me a Ferrari for free and I guarantee you I couldn't afford it. While I've avoided a 6 digit purchase price, the cost of gas, insurance, maintenance, and repairs would be a deal buster. Add to this that a 2 seater car would not fit into my current lifestyle (kids/dogs) and you get a full picture.

For the "hybrid premium" arguement. If you think of the hybrid as being a trimline, it will help you better understand the arguement is nonsense. Easier to visualize with a Camry. You can get a LE, XLE, or Hybrid for example. Each is a Camry, each has different features. Leather seats adds to a cars cost, you never can "earn" that money back, but maybe you like the look and feel of them. A hyrid comes with a different engine set up and transmission (and other options)

Your choice! Your value system!

I originally came to this forum because I wanted more information on the car and to find out about its reliability, nuances, and other such things that you can't get from looking at a Toyota brochure. What I've come away with is that folks here love their cars, get very good gas mileage, have extremely low exhaust emissions, and have come up with ingenious ways to improve the operation of their vehicles.

I can't wait until I can free up the budget to upgrade my car to a Prius.

 

13) Kammback aerodynamic design - the most aerodynamic car on the market (This "ugly" shape does have a premium benefit).

 

I'll go with your new No. 13, but I'll leave out the parethetical phrase. Ugly? I like the look. I really like the look.
Ugly: the AMC Matador.

 

I thought I covered it in #9. I'll put in 'the most'.

 

Has AMC ever produced a car that WASN'T ugly?

 

I didn't like the look of the Prius when I bought mine. I bought it in spite of the looks because I wanted the features and the Kermit factor. But it's grown on me and now I like the looks.

 

People thought the original Volkwagen was ugly when it came to this country. It grew on people, acquired its own mystique, and got resurrected.

Maybe thirty years from now, after the LovePrius movie is a hit, the neo-Prius will be issued.

 

They were right to think this.

 

I too have taken some hair from the hide of that horse with a stick.
Check the thread for some good comebacks.

 

So THAT'S a Matador! Yup, adverts work.

Most people who are not trying to prove some bogus opinion come to the conclusion that the "Hybrid Premium" is about $3000 for the Prius. That is to say, if you built many non-hybrid Prius and sold them at "what the market would allow", the price would be $3000 less than the hybrid model. Mostly that is based on the Camry vs the Camry Hybrid and the Civic vs the Civic Hybrid.

So using this number, they claim you can then figure out the "payback time". In reality, we have no clue how much fuel will cost over the next XX years. We have no clue how far we will drive. We have no clue how expensive CO2 emissions will be. All because those who are honest will admit they can't predict the future. All we DO know is fuel will be more expensive, CO2 will be bad, and we will drive the car a lot.

Especially if it's a Prius, because it's fun to drive!

Buy what you like, what you can afford, and what you are comfortable with.

If you want to join our club of Prius owners, WELCOME!!

 

You could say there was a premium when demand outweighed supply before production ramped up and people were paying well over msrp.