But I sure wish it was easier to sell the Civic hybrid
January 26, 2012
from Hybridcarblog
“Get with the program.” That’s what an advertising agency friend told me once regarding Hybridcarblog. I’m too critical, he rightly pointed out. Instead, he suggested that I sell every hybrid and plug-in that I cover. That, he assured me, would drive ad revenues higher. Besides, he scoffed, modern journalism isn’t about selling the truth, it’s about selling ad space.
So, how do you sell a car like the Honda Civic hybrid?
Don’t get me wrong. I respect anyone that buys a hybrid or a plug-in, but my goal isn’t really to sell cars. Sure I first got into this game to promote hybrid and plug-in technologies, but only as a means to a better environment and greater national security — and those two issues, particularly the later one, are at the foundation of every word I write.
That makes covering this space tough for me, because I know how full of crap is the auto industry. I’ve been inside their game, and their use of halo products — which most hybrids and plug-ins are today — drives me, literally, towards insanity. Their ability to use perception and deception to obscure reality is impressive.
But let’s get back to Honda and the Civic hybrid.
On the plus side, Honda has offered some of the best fleet fuel economy in the industry, although that’s largely because they’ve simply avoided the truck segment. Likewise, Honda was an early adopter of hybrid cars.
So, why isn’t Honda’s hybrid program further along? Why isn’t the Civic hybrid, for example, more of a compelling purchase after more than 10 years in this space?
What do I mean?
According to Honda there is a $4,495 cost difference between the Honda Civic hybrid and the Honda Civic HF. Based on average fuel economy that means that Civic hybrid provides a $385 gasoline savings advantage per years according to government estimated fuel efficiency. Thus, it takes 11.67 years for the Civic hybrid to recover its hybrid premium compared to the Civic HF.
Why even sell a Civic hybrid? I mean, it’s not just the premium. That extra $4,495 also requires extra financing costs, extending this premium further. Add in the questionable reliability of Honda’s battery technologies thus far, and why take the hybrid risk?
That’s the way all hybrids are, right?
Wrong. According to Forbes the Toyota Camry hybrid, for instance, recovers its hybrid premium within 5 years compared to comparably equipped non-hybrid Camry. If you’re a hardcore city driver, the hybrid premium can be recovered even sooner.
Consequently, 5 years ago, I could understand this Honda hybrid price differential, but after nearly 1 million hybrid sales, Honda still hasn’t figured out a way to improve cost-effectiveness?
But, I digress. I need to sell the Honda Civic hybrid. So, why should you buy a Civic hybrid?
The best reason is probably because you’re a huge Honda and Civic fan and you want to make a statement, especially since limited demand might result in a great Civic hybrid deal that can help drive down the Honda hybrid premium. And, if you’re a hardcore city driver, you can probably reduce the Civic hybrid premium even more. Plus, the Honda Civic hybrid offers pretty solid resale value.
Even better, take the above, and consider your Civic hybrid purchase a hedge against future gasoline prices. If gas prices spike in the next decade — assuming you’re an average buy-and-hold car buyer — you could actually come out ahead long term.
Unfortunately, that’s a tough sell for most Americans, but if you’re a hardcore Civic fan, I think it’s worth the risk considering the last few years of gasoline prices. So, think long term and buy the hybrid version of the Honda Civic.
Sure, Honda’s hybrid technology offers little in the battle against foreign oil dependence, but it can at least take the scare out of gasoline spikes for Civic fans.
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