Supposed "HYBRID PREMIUM"

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.

 

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

 

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

 

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.

 

Yes. When comparing with a manual, why not?

 

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.

 

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.

 

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.

 

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

 

Exactly. And as I've stated before, what about the "premium" a lot of people pay for a large SUV or full-sized pickup truck? A $25,000 car vs. a $40,000 gas guzzler. As I see it, the gas guzzler is costing the owner a lot more than the so-called "premium" of a $25,000 hybrid.

Besides, the "premium" that one pays for a gas guzzler like a Silverado or Tahoe is much, much higher than one that a Prius owner would endure. Tires that cost $200 per tire. The four-wheel drive can develop problems that cost thousands. The mpg is pathetic. Everything seems to cost a lot more on a large 4X4 than it would for a full-sized car. Granted, someone who chooses a $25,000 Prius over a $22,000 Camry pays more but the comparison is flawed because it ignores all of the "premiums" that a lot of people pay for other types of vehicles.

 

Seems to me that he's objecting to them focusing on it.
It is a new technology, however, and the "premium" is something Joe Consumer wants to learn about to make an informed buying decision.
It's the job of the press to research and inform us (even with their declining journalism standards).
I have no objection to them exploring and reporting on this as long as their facts are accurate.

 

The problem with American's we think of the short-term cost and don't look at the bigger picture. I've mentioned this before, but if we did, all the lights in our homes would be flourescent(mine are), we'd eat well and excercise, insulate our homes better etc.

 

Yep. Those are premiums!

 

Get a Dalmatian and you'll learn to appreciate the leather Zack's hair is so fine it sticks to everything. At least on the leather, it's easier to vacuum op.

That actually wasn't our main reason for leather though - We got it simply because both my wife and I thought it was ridiculous to have cloth on the arm rests on both the door and center console. This is the first car I've had with leather and I really like it.

 

I'm not knocking leather...I love steak and I'm glad that cowhide is going to good use. To me, it's just not something I want to pay extra for. Hybrid, side curtains airbags, CD, ABS absolutely. NAV & Bluetooth, no thanks.

And when/if we get a dog, it will have to have hair, not fur, we're a very allergic family.

 

I do not think that comparing a 25,000 Prius against a 40,000 SUV is a valid comparison. They have totally differnet mission profiles. The SUV does things that the Prius cannot do.... and vice versa.

Would you question... "why did the farmer pay $100,000 for a tractor when he could have bought a Prius for 25% of the cost?" Of course not... they do different jobs.

If on the other hand... you were to take the same car, with the only difference being the addition of Hybrid technology, then you can make a valid tradoff. So for example... when the Toyota Camry Hybrid is released in a hybrid... you will be able to compare the premium paid for the hybrid... and determine if it is worth it for your situation.

/Jim

 

but you forgot that a lot of people buy SUVs because they are SUV trend followers and not for the actual purpose of the car. In other words it's a fashion statement or a status statement in case of the expensive ones.
Why in affluent downtown areas or in wealthy suburbs we see SUVs with guardrails and all the accessories one would need crossing off the beaten path Zambezi River or an Australian Outback?
If someone has 500 acres of land somewhere in North Dakota and has to commute to his herds of sheep I guess the SUV concept might be applicable. To me this is a premium you pay for driving a trendy vehicle when you could just commute in a regular sedan. Granted there are exceptions, but the exceptions are small.

 

To the uninitiated, hybrid tech is a petrol savings device = less money spent at the pump. Nothing more, nothing less. It does not add to the driving experience, and so has no additional value that merits it's purchase. Unlike E.g., a built-in gun rack, or a chrome grill, or a two foot wide spoiler. Since the tech rather clearly is more expensive, the additional cost is the 'premium'.

Other people call the Prius a 'lifestyle' purchase, recognizing that the car has certain attributes not present on other cars, like low emissions, stealth running, less carbon production, that might appeal to one consumer to purchase, but not another. These people do not say the Prius has a premium, they just usually are not interested in the Prius' 'features', at the costs being asked.

Both groups fail to recognize the Prius as a community asset, and since in total they represent way over 90% of society, are getting what they deserve in our democracy. Bush, Cheney, Iraq, ANWAR ...

 

I think if you are going to factor in the "premium", then you need to also factor in the future increased resale price. You pay more up front, but then you subsequently save not only on gas, but when you sell your car. More of your starting capital is retained.