Hybrid sales soar High gas prices spur more drivers to look and buy by David Tyler Staff writer http://www.democratandchronicle.com/apps/pbcs.dll/article?AID= /20050925/BUSINESS/509250330/1001 (September 25, 2005) - No doubt you've watched the digits on the gas pump's price display whiz upward as you've filled your vehicle's tank. Maybe the price has you muttering under your breath. Or, muttering loud enough for everyone to hear. And maybe you've pulled up at a stoplight and seen someone driving a hybrid car and wondered ... is now the time to buy one? The answer isn't simple, experts say. But a case is building for a closer examination of the technology. With a new tax credit looming and gas prices sitting where they are, the extra premium that consumers pay to buy a hybrid doesn't seem quite so steep. The images of breadboxes on wheels that had to be plugged in at night are being replaced by hybrids of many shapes and sizes that are finding their way onto the nation's roads. More models are coming in 2006. Now drivers have to evaluate whether issues of price, availability and new technology outweigh the escalating cost of gas. "A year ago I was telling people hybrids are nice," said Dan Kahn, road test editor for the automotive Web site Edmunds.com. "But now I've changed my story. They're making more and more sense as time goes on." Can you get one? As 2005 draws to a close, finding a hybrid is becoming much easier. There are now eight different hybrids in dealer showrooms. At least four more are expected in 2006 and six more versions will follow in 2007. Automakers also are ramping up production, which should help reduce waiting lists. Toyota committed to boosting production of its hybrid Prius in May, and that helped eliminate Vanderstyne Toyota's waiting list, said Jay Vanderstyne, president of the Greece dealership. Ford announced plans last week to boost its production of hybrids. The automaker plans to have hybrid versions of more than half its models by 2010. In the first eight months of the year, Toyota has sold more than 72,000 Priuses, about 20,000 more than it did in all of 2004. That success is prompting Toyota to explore building a U.S. factory to keep up with demand, said Kahn. Through August, more than 117,000 hybrids have sold in the United States this year. That's a small fraction of the more than 16 million vehicles U.S. buyers will purchase this year, but still the best year by far for hybrid sales. With more models on the way, should buyers wait six months or a year for more choices? There are some benefits to waiting. Prices will likely come down as technology improves and automakers make more vehicles. But Edmunds' Kahn said if you're in the market for a hybrid, don't necessarily hold off, unless you have your heart set on a particular model. There's already a lot of choice, he said. "It's like buying a laptop computer five or 10 years ago," he said. "There's always going to be something better coming out tomorrow." Price vs. cost The hybrid technology still costs extra. Sticker price on a Prius starts around $21,000. You can expect to pay $30,000 or more for a hybrid Ford Escape with options, while the base version of the gasoline-powered model is around $19,000. There are luxury versions, too. The new Lexus RX400h SUV lists for about $49,000. But help is on the way. This summer, Congress passed a tax credit of as much as $3,400 for hybrid vehicle purchases made in 2006. "We think this will go a long way to help buyers," said Brian Wynne, president of the Electric Drive Transportation Association, a Washington-based trade group that promotes electric vehicles. With gas hovering near $3 a gallon, a buyer can get a quicker return on that extra investment just from savings at the pump. For a new technology, hybrid-drive cars - which do not need to be plugged in - have performed remarkably well, experts say. "They have the same reliability as other cars made by the same manufacturer," said Tom Camp, general sales manager for Dorschel Automotive in Henrietta, which sells two Toyota models and the Lexus. The battery technology most hybrids use has not been subject to any widespread problems, said Edmunds' Kahn. "And in most cases, manufacturers say the battery life will outlast the life of the car," he said. Chuck Chadwick, 76, of Brighton bought his Honda Insight hybrid in 2000, the first year the model was sold. In those five years, he's had few complaints. "I'm very happy with it," he said. Chadwick said he had one problem with the Insight's standard battery, but the hybrid battery has worked fine. Local dealers have sent service technicians to be trained on the new technology. Kris Switzer, Internet sales manager at Webster Ford, says the Escape Hybrid uses a gas engine similar to the one used in the Ford Focus, which cuts down on maintenance and repair confusion. Joyce Worboys of Rochester says her Insight has been averaging 53 miles per gallon in the 18 months she's owned it. "There have been absolutely no problems. I've just kept up with regular maintenance," she said. Wynne goes one step further. "We're implementing (electric drive) in ways that get better all the time," he said. "This is now a proven technology. Manufacturers don't want to put anything in the marketplace that's not absolutely proven and works." Clocking mileage Of course, the biggest appeal of a hybrid is its mileage. Now that more hybrids are on the market, there's an increasing diversity of mileage ratings. Drivers who are looking for mileage ratings in the 50-mpg range are still going to have to go for the smaller vehicles. The Prius, Insight and Honda Civic hybrid are the best mileage choices. Hybrid SUVs, such as the Lexus, Escape and Mariner, can get as much as 36 mpg in the city, while offering plenty of room. There's also something to consider when you look at a hybrid's window sticker: Most get better mileage in city driving because the electric motor in the car does most of the work at slower speeds, meaning more gas is burned in highway travel. That boost in mileage is enough to cause some traditional SUV buyers to reconsider their vehicles. "We've had two Hummers traded in for the Lexus in the last week or so," said Dorschel's Camp. But there are trade-offs to consider, said Rich Ferrari, general manager of Dick Ide Honda in Penfield. "If you take a hybrid V6 Accord and compare it to a four-cylinder gas-powered model, the question is, do you want to pay all that money for a few more miles per gallon?" Ferrari said. It's too early to tell whether today's gas prices will have a lasting effect on buying habits. Count Kahn among those who think it will. "Americans are notorious for ignoring fuel economy," said Kahn. "I think that's going to change." Ferrari says he hasn't seen a marked increase in hybrid sales at his dealership. "It's still 3 percent or 4 percent" of the dealership's volume, he said. But Grant Morey, sales manager at John Holtz Honda in Henrietta, said sales jumped after Hurricane Katrina caused gas to spike. "We sold our remaining '05 Civic hybrids in three days, and we have a waiting list for the '06," he said Worboys said a woman followed her into the bank recently to ask about her Insight. "She asked me for every little detail because she wanted her husband to have one," she said. "People definitely notice."