November 22, 2006
Guess Who’s Driving the Hybrid?
You know what they say about making assumptions. It’s a practice that rarely turns out well for anyone.
A recent study by the automotive web site Autobytel clearly demonstrates the point by debunking assumptions about who drives hybrid cars.
For one, hybrids are not a California thing, even if the odd movie star is seen driving up to a red carpet in a Prius. Autobytel’s research found only 16 percent of hybrid owners
live on the West Coast while 31 percent reside in the Northeast; 21 percent in the Midwest; and 20 percent in the Southeast. The only region with fewer hybrid car buyers was the
Southwest, with 12 percent.
You might also assume that hybrid drivers are young – wrong! Fifty-seven percent of the people who drive hybrids are 45 or older, according to the research. Thirty-seven percent
are 55 and up.
Education and income also do not appear to have a significant bearing on hybrid sales. Nearly half (47.5 percent) of hybrid buyers have not obtained a college degree while the
majority of drivers (52 percent) have a household income of less than $60,000 a year. Thirty-five percent make below $40,000.
Forty-two percent of hybrid owners are members of an ethnic minority. African Americans (12 percent), Hispanics (11 percent), and Asian/Asian Americans (10 percent) are the top
three groups.
Politically speaking, hybrid owners are a diverse group with the greatest percentage affiliated with the Republican party. Forty percent of hybrid owners are members of the GOP
while 36 percent are Democratic. The remaining 24 percent identify themselves as independent or unaffiliated.
Finally when it comes to gender, men are much more likely to drive a hybrid (65 percent) than a woman (35 percent).
Discussion Question: Does the profile of hybrid car buyers in the Autobytel study suggest to you that other “green” product categories may appeal to
consumers other than those generally assumed to be shopping the category?
One of our first thoughts after seeing the Autobytel research was that many of those who have suggested Wal-Mart does not belong in the organic food business
may be proven wrong. The people buying hybrids share some striking similarities to Wal-Mart’s core consumer base. The average Wal-Mart shopper, for example, has a household income
of $35,000 – $40,000.
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The Autobytel findings on the hybrid buyers suggests to me that the potential for the “green” market may be very broad from a demographic point of view – even including that slice of middle America that shops Wal-Mart. For instance, I was surprised about the % of ethnic buyers for hybrids. There is a heightened awareness about the environment, energy, and more natural (organic) products. And as Race Cowgill pointed out, consumers who have an interest in these “green” areas are no longer the “tree huggers” of the 60’s. As “green” products offer more and more “value” to consumers (whether financial or emotional) consumers across a broad spectrum will move in that direction.
Context sure would be helpful. Comparing the population of hybrid buyers to the population of all new-car buyers would, I think, show that the two groups aren’t much different. The average new-car buyer is about 45 years old if memory serves, and the distribution in region of the country is about the same as the numbers above.
I’ve owned a Prius since April of 2006. I brought it for two reasons: 1) Saves on gas + tax incentives; 2) It’s a green car which helps with the environment. I’m 40 and have a family. No one considers me to be a tree hugger or a environmentalist. I paid $21K for the car and got a great trade-in on my old auto. I just like it.
Many compare this car to other traditional vehicles, such as the Corolla or a stripped down Saturn, and say you don’t get your money’s worth. I disagree somewhat with this statement. Indeed, if comparing the vehicle based on size/available interior room, the argument wins; however, when you look at the technology within the car, the argument is invalid.
This is not a typical car and the apples to apples comparison just doesn’t hold, in my opinion. In addition, the maintenance for this car has been overrated. Many feel it will cost 1000’s to keep this thing going. This isn’t true. At 5K intervals, I spend $39 for an oil change and tire rotation. Of course at 30K, there will be a need for filters, etc to be changed but that’s expected with any car. Also, after my 8 year warranty on my battery expires I can get replacements off eBay if I so desire for less than $1000 (today’s prices).
One other thing to note: most negative articles or statements related to hybrid vehicles comes from publishers in the mid-west (specifically Michigan). I think I don’t have to elaborate on the connection here.
Cars like this are the future….
I would encourage any to drive whatever they want within the limits of what they can afford. While hybrids are fashionable, better economy can be realized by buying a Civic, Scion or any number of other smaller cars. I personally know someone who bought a Civic hybrid. Did you know that the air conditioning, radio and a number of other creature comforts actually cease to function when this car comes to a stop? Additionally, his wife’s Civic (gas) actually got better mileage on the highway.
Hybrids are a fashion statement. Like Prada purses, they are expensive and in short supply. I suspect that the fact that they are scarce contributes more to their cachet than the actual efficiency of the vehicles.
Know that the Rich have a better alternative in the Mercedes E320 diesel. With a 0 to 60 of less than 8 seconds and over 40 MPG on the highway, here is a great alternative in a vehicle that will actually protect you in a crash with an SUV.
Would have guessed that hybrid drivers would skew a bit higher on the income scale, since these cars are somewhat more expensive than other comparably sized and equipped sedans. Driving a Prius these days is a form of conspicuous responsible consumption – a status symbol of sorts for the environmentally conscious. From what I can tell, the added purchase cost is not justified by fuel cost savings alone – even at $2.50 per gallon.
But the more recent introduction of new hybrid luxury vehicles from several makers is clearly an attempt by automakers to make hybrids more appealing to the upper crust. Higher end drivers don’t want to sacrifice creature comforts or personal safety by driving a smaller car. A hybrid luxury SUV is like a dream – even at a $10K premium versus the conventionally powered model. The hidden “Easter egg”: the electric motors in these cars make them very quick and quiet off the line.
It is a bit odd to me that we may be so surprised by these findings. The hybrid market is capturing at least two groups: those who want to save money (on gas) and those who care about the environment. People with these interests, at least according to our research, are all over the map. Our data shows that even just people who care about the environment are also.
The factor that has usually limited the green market is that green products are often more expensive and sometimes quite a bit so. Perhaps we are stuck in the thinking from the 1960’s, when “tree-huggers” were a new breed and quite rare. This is no longer valid information. The data of how many and what groups of people label themselves as “extremely concerned” and “moderately concerned” about the environment, is quite interesting.
Speaking of valid information, let me make a clarification: making assumptions is the process of drawing conclusions or making assessments based on prior information. This is the process that allows us to speak, to drive cars, to eat, and to get our jobs done. It isn’t unproductive in itself. It is unproductive when we are not aware we are doing it AND when the prior information we are using is flawed.
Just reword the article to say that 43% are young, 31% live on the West Coast, 52 1/2% have a college degree, 48% make over $60k per year, 58% are white, and 60% are not Republicans. Hey, I think I saw those people at Trader Joe’s!
One thing that may help to explain the income data: A co-worker of mine bought a hybrid car, I believe in the state of Maryland. The state incentives were so favorable that it was less expensive for him to buy a hybrid than a standard car. I would be interested to know how many other programs like that exist.
Also, taking into account the results of the last election, Americans appear to be uniting against certain things — like the war in Iraq. It’s not such a big leap to say we (at all income levels, green and not green) are finally bridling against our dependence on foreign and Middle Eastern oil. Truly, if we as a country had even a modest degree of energy-independence, there would be no war in Iraq.
The Autobytel research may be based upon Autobytel buyers. If that’s true, then it might not match the general population. People use Autobytel to save money. Many car buyers aren’t skilled or interested in saving money. The people who don’t care so much about getting a great price aren’t using Autobytel and perhaps they are also people with higher incomes who don’t care so much about fuel efficiency. What proportion of millionaires carefully read every Valpak coupon?
The short answer to the question posed, “Does the profile of hybrid car buyers in the Autobytel study suggest to you that other “green” product categories may appeal to consumers other than those generally assumed to be shopping the category?”- I hope so! Thomas Friedman, columnist for the New York Times, recently lecturing at a local college was asked what, according to him, the job discipline of the near future would be. He responded emphatically- “Anything Green.” With the emerging economies of China and India our environment will be under tremendous pressure. As a consumer, when faced with a purchase decision, I make it a point to purchase the environmentally responsible option. The Autobytel study suggest that we may be getting the message slowly. Having lived overseas paying over $4 per gallon for gasoline in 1985, Americans will become more ‘green’, more quickly, when more ‘green’ flows from their wallets!
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The Autobytel findings on the hybrid buyers suggests to me that the potential for the “green” market may be very broad from a demographic point of view – even including that slice of middle America that shops Wal-Mart. For instance, I was surprised about the % of ethnic buyers for hybrids. There is a heightened awareness about the environment, energy, and more natural (organic) products. And as Race Cowgill pointed out, consumers who have an interest in these “green” areas are no longer the “tree huggers” of the 60’s. As “green” products offer more and more “value” to consumers (whether financial or emotional) consumers across a broad spectrum will move in that direction.
Context sure would be helpful. Comparing the population of hybrid buyers to the population of all new-car buyers would, I think, show that the two groups aren’t much different. The average new-car buyer is about 45 years old if memory serves, and the distribution in region of the country is about the same as the numbers above.
I’ve owned a Prius since April of 2006. I brought it for two reasons: 1) Saves on gas + tax incentives; 2) It’s a green car which helps with the environment. I’m 40 and have a family. No one considers me to be a tree hugger or a environmentalist. I paid $21K for the car and got a great trade-in on my old auto. I just like it.
Many compare this car to other traditional vehicles, such as the Corolla or a stripped down Saturn, and say you don’t get your money’s worth. I disagree somewhat with this statement. Indeed, if comparing the vehicle based on size/available interior room, the argument wins; however, when you look at the technology within the car, the argument is invalid.
This is not a typical car and the apples to apples comparison just doesn’t hold, in my opinion. In addition, the maintenance for this car has been overrated. Many feel it will cost 1000’s to keep this thing going. This isn’t true. At 5K intervals, I spend $39 for an oil change and tire rotation. Of course at 30K, there will be a need for filters, etc to be changed but that’s expected with any car. Also, after my 8 year warranty on my battery expires I can get replacements off eBay if I so desire for less than $1000 (today’s prices).
One other thing to note: most negative articles or statements related to hybrid vehicles comes from publishers in the mid-west (specifically Michigan). I think I don’t have to elaborate on the connection here.
Cars like this are the future….
I would encourage any to drive whatever they want within the limits of what they can afford. While hybrids are fashionable, better economy can be realized by buying a Civic, Scion or any number of other smaller cars. I personally know someone who bought a Civic hybrid. Did you know that the air conditioning, radio and a number of other creature comforts actually cease to function when this car comes to a stop? Additionally, his wife’s Civic (gas) actually got better mileage on the highway.
Hybrids are a fashion statement. Like Prada purses, they are expensive and in short supply. I suspect that the fact that they are scarce contributes more to their cachet than the actual efficiency of the vehicles.
Know that the Rich have a better alternative in the Mercedes E320 diesel. With a 0 to 60 of less than 8 seconds and over 40 MPG on the highway, here is a great alternative in a vehicle that will actually protect you in a crash with an SUV.
Would have guessed that hybrid drivers would skew a bit higher on the income scale, since these cars are somewhat more expensive than other comparably sized and equipped sedans. Driving a Prius these days is a form of conspicuous responsible consumption – a status symbol of sorts for the environmentally conscious. From what I can tell, the added purchase cost is not justified by fuel cost savings alone – even at $2.50 per gallon.
But the more recent introduction of new hybrid luxury vehicles from several makers is clearly an attempt by automakers to make hybrids more appealing to the upper crust. Higher end drivers don’t want to sacrifice creature comforts or personal safety by driving a smaller car. A hybrid luxury SUV is like a dream – even at a $10K premium versus the conventionally powered model. The hidden “Easter egg”: the electric motors in these cars make them very quick and quiet off the line.
It is a bit odd to me that we may be so surprised by these findings. The hybrid market is capturing at least two groups: those who want to save money (on gas) and those who care about the environment. People with these interests, at least according to our research, are all over the map. Our data shows that even just people who care about the environment are also.
The factor that has usually limited the green market is that green products are often more expensive and sometimes quite a bit so. Perhaps we are stuck in the thinking from the 1960’s, when “tree-huggers” were a new breed and quite rare. This is no longer valid information. The data of how many and what groups of people label themselves as “extremely concerned” and “moderately concerned” about the environment, is quite interesting.
Speaking of valid information, let me make a clarification: making assumptions is the process of drawing conclusions or making assessments based on prior information. This is the process that allows us to speak, to drive cars, to eat, and to get our jobs done. It isn’t unproductive in itself. It is unproductive when we are not aware we are doing it AND when the prior information we are using is flawed.
Just reword the article to say that 43% are young, 31% live on the West Coast, 52 1/2% have a college degree, 48% make over $60k per year, 58% are white, and 60% are not Republicans. Hey, I think I saw those people at Trader Joe’s!
One thing that may help to explain the income data: A co-worker of mine bought a hybrid car, I believe in the state of Maryland. The state incentives were so favorable that it was less expensive for him to buy a hybrid than a standard car. I would be interested to know how many other programs like that exist.
Also, taking into account the results of the last election, Americans appear to be uniting against certain things — like the war in Iraq. It’s not such a big leap to say we (at all income levels, green and not green) are finally bridling against our dependence on foreign and Middle Eastern oil. Truly, if we as a country had even a modest degree of energy-independence, there would be no war in Iraq.
The Autobytel research may be based upon Autobytel buyers. If that’s true, then it might not match the general population. People use Autobytel to save money. Many car buyers aren’t skilled or interested in saving money. The people who don’t care so much about getting a great price aren’t using Autobytel and perhaps they are also people with higher incomes who don’t care so much about fuel efficiency. What proportion of millionaires carefully read every Valpak coupon?
The short answer to the question posed, “Does the profile of hybrid car buyers in the Autobytel study suggest to you that other “green” product categories may appeal to consumers other than those generally assumed to be shopping the category?”- I hope so! Thomas Friedman, columnist for the New York Times, recently lecturing at a local college was asked what, according to him, the job discipline of the near future would be. He responded emphatically- “Anything Green.” With the emerging economies of China and India our environment will be under tremendous pressure. As a consumer, when faced with a purchase decision, I make it a point to purchase the environmentally responsible option. The Autobytel study suggest that we may be getting the message slowly. Having lived overseas paying over $4 per gallon for gasoline in 1985, Americans will become more ‘green’, more quickly, when more ‘green’ flows from their wallets!