Even though it was Kermit the Frog who sang “it ain’t easy being green,” it appears that eco-friendly car owners are ditching their hybrid and electric vehicles for SUVs at a higher rate than ever before, according to Edmunds.com.
Not surprisingly, financial matters seem to figure into the motives, according to Jessica Caldwell, Edmunds.com’s Director of Industry Analysis. “For better or worse, it looks like many hybrid and EV owners are driven more by financial motives rather than a responsibility to the environment.”
The analysis offers a surprising look at how today’s gas prices are drawing hybrid and EV owners toward gas-guzzling vehicles at a much more accelerated pace than in recent years.
According to Edmunds.com, about 22 percent of people who have traded in their hybrids and EVs in 2015 bought a new SUV. The number represents a sharp increase from 18.8 percent last year, and it is nearly double the rate of 11.9 percent just three years ago. Overall, only 45 percent of this year’s hybrid and EV trade-ins have gone toward the purchase of another alternative fuel vehicle, down from just over 60 percent in 2012. Never before have loyalty rates for alt-fuel vehicles fallen below 50 percent.
“Three years ago, when gas was at near-record highs, it was a lot easier to rationalize the price premiums on alternative fuel vehicles. But with today’s gas prices as low as they are, the math just doesn’t make a very compelling case,” Caldwell said.
To underscore the point, Edmunds calculates that at the peak average national gas price of $4.67/gallon in October 2012, it would take five years to break even on the $3,770 price difference between a Toyota Camry LE Hybrid ($28,230) and a Toyota Camry LE ($24,460). At today’s national average gas price of $2.27/gallon, it would take twice as much time (10.5 years) to close the same gap.
Edmunds’ analysis comes at a time when overall sales of alternative vehicles have continued to slide. EVs and hybrids accounted for just 2.7 percent of all new car sales in the first quarter of 2015, down from 3.3 percent during that same period last year. The share of SUVs, meanwhile, has increased from 31.8 percent in Q1 2014 to 34.2 percent in Q1 2015.
Shoppers who want to learn more about hybrid and electric vehicles on today’s new and used market are encouraged to visit Edmunds.com at http://www.edmunds.com/hybrid/. Shoppers can also calculate “breakeven” times using Edmunds’ Gas Guzzler Calculator at http://www.edmunds.com/calculators/gas-guzzler.html?sv.