Top 10 gas misers
for 2005
By Michael
Giusti Bankrate.com
Even though truck and SUV sales rule today's auto
market, a growing minority of car buyers think green when they hit
the showroom to shop for some new wheels.
With the 2005 slate of hybrid, diesel and lightweight
cars at their disposal, those environmentally conscious drivers
can choose from a more diverse and affordable family of fuel-efficient
vehicles than ever before.
But even with acres of options and painful gas prices
as motivation, only a sliver of the automotive market actually approaches
the showroom with conservation as their primary objective.
"Fuel efficiency is more important now than ever
before," says Randy Bly, spokesman for AAA
Auto Club South. "But I say that with a caveat, because
before now, efficiency just wasn't important."
So, how much does fuel efficiency factor into the
car-buying process?
"Now you would get a different answer than you
would even just a few years ago," says Dan Kahn, road test
editor for Edmunds.com,
a national Web-based automotive magazine. "Once we crossed
the $2 per gallon mark for gasoline, efficiency became a popular
issue and sales for models of fuel-efficient cars like the (gas-electric
hybrid) Toyota Prius skyrocketed."
Still, with national sales of hybrids measured in
the thousands rather than the hundreds of thousands, "skyrocket"
has to be taken as a relative term.
More than anything, market watchers say the fuel-price
spike in 2004 served as a catalyst to help make efficiency trendy.
"There is certainly more than a little psychological
influence at play here," Kahn says. "In truth, the difference
between $1.90 gas and $2 gas just isn't enough to break the bank,
but it did seem to be enough to prompt some people into action."
While the vast majority of consumers still see larger,
less fuel-efficient vehicles as the preferred status symbol, another
segment seems to have emerged that is chasing fuel efficiency.
"The market seems to be going in two different
directions," Kahn says. "You still have your people looking
for sports cars and size, but you are also seeing some buyers who
are really into economy."
Shocked at the pump, and perhaps looking to prove
a point, two basic groups began heading to the dealerships in earnest,
hunting for ways to stretch their fuel dollar.
The first half seems to be opting for efficiency out
of pure economics.
"They see this as a way to save money. They don't
spend a lot on gas and not a lot on maintenance," Kahn says.
From a purely financial standpoint, small diesel or
gasoline engines offer the best return on investment, he adds.
"Fuel-efficient cars, like your typical Honda
Civic four-cylinder, can cost as little as $15,000. That is a peppy
little car and will average in the mid-to-high 30 miles-per-gallon,"
Kahn says. "That is a good financial decision when you compare
it with a Ford Mustang, where you will get much less mileage and
pay more to drive it off the lot."

Honda Insight
Click image for larger view |
Economics aside, still others are flocking to the
fuel-efficient brands in search of status symbols. Following the lead
of several high-profile celebrities, such as Julia Roberts and Cameron
Diaz, buyers began to jump on board with ultra-clean hybrid gas-electric
technology in 2004. For the first time, many buyers are now comparing
miles-per-gallon the same way sports car owners compare horsepower.
"Those are the people who are trying to save
the environment, trying to save the Earth and burn fewer fossil
fuels," Kahn says.
Like any new technology, hybrid vehicles demand a
premium from the first buyers.
"Take the Honda Accord Hybrid for example. You
pay $6,000 more than a typical Accord, but you only get six more
miles per gallon. The economics just aren't there," Kahn says.
So, even though gas-electric hybrids rule the roads
as the undisputed mileage champions in 2005, they rarely pay for
themselves in fuel savings.
Even when you factor any federal
income tax breaks into the savings, buyers rarely break even.
That doesn't mean fuel-efficient technology is a dead-end
road.
"The technology will get better and cheaper with
every generation, but right now we are still fairly early in the
development process and it costs more to get in," Kahn says.
(continued
on next page)
-- Posted: Feb. 15, 2005
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