More Car Buyers Choosing On MPG

Gas Mileage Factors In To Consumers' Car Buying Decisions Now More Than Ever

(AP)  More new vehicle buyers than ever cite inadequate gas mileage as a reason for choosing one car over another, according to a study of vehicle preferences.

The study released Wednesday by J.D. Power and Associates also said a growing number of potential car buyers are considering buying Asian brands, while the number considering cars from domestic automakers is shrinking.

"Fuel economy has definitely become a more important issue, and I think if we were in the field with the survey right now I think it would be even more important," said Tom Gauer, senior director of automotive retail research at J.D. Power.

The results of the study, conducted from May to July, come at a time when U.S. automakers are scrambling to get fuel-sipping vehicles to the market.

General Motors Corp. and Ford Motor Co. have been ramping up production of its small cars to meet demand, while cutting back production of slow-selling trucks and sport utility vehicles. GM also plans to sell a new global compact car, the Chevrolet Cruze, in the U.S. in 2010, the same time Ford will introduce its new European-designed Fiesta. Both cars are expected to get close to 40 miles per gallon.

The J.D. Power survey showed nearly 20 percent of buyers cited inadequate gas mileage as a reason for rejecting one car in favor of another, up 3 percentage points from 2007. That figure was the biggest year-over-year increase among the reasons cited for rejecting a car, Gauer said, and has climbed from about 15 percent in 2003.

However, fuel economy remained in third place among the most important factors consumers cited for turning down a vehicle. The No. 1 factor remained sticker price, which 40 percent of buyers cited as a reason for turning down a car. The No. 2 factor was a car's monthly payments, Gauer said.

Meanwhile, the percentage of buyers considering an Asian brand rose 3 percentage points to 63 percent, while the number considering a domestic brand shrunk 3 points to 55 percent.

That trend has been ongoing for several years, Gauer said. More telling, he said, is that shoppers who consider buying both an Asian and U.S. brand are more likely to choose the Asian brand - and they are most likely to do so because of "product-attributes," such as vehicle quality or mileage.

Those who choose a domestic vehicle, on the other hand, are more likely to cite support for the U.S. auto industry and product rebates in their reasoning, the study said.

"A key advantage the Asians have developed in the marketplace all revolve around the product itself," Gauer said.

J.D. Power's study surveyed 29,903 new-vehicle buyers by mail. The margin of sampling error varies depending on each question but is generally less than 1 percent, Gauer said.

[claydowner]

The United Kingdom has city cars that consistently get 50 MPG. The UK also has turbodiesels that get 65 to 75 MPG. Many of these models are made by Ford, GM, and other manufactuers that sell to the North American market. The UK has a variety of electric cars and even electric trucks. European countries have much more fuel efficient cars than in the US. I believe it is very important to remember that the US was making good progress in the 1970''s after Jimmy Carter initiated high mileage standards for cars. Then in the 1980''s under Reagon, we slid backwards by building nearly a 100 million SUV''s and huge clubcab 4 wheel drive pickup trucks. Why haven''t we had city cars here in the US when American car manufacturers make them?

The control of oil companies, the auto industries, and other special interest groups with their lobbyists in Washington DC are entirely too strong. Also the Federal government should have had a progressive tax on imported oil. We imported about 40% of our oil from the Middle East in the 1970''s today it is 70%. Many other countries including Sweden, Japan, Brazil and other European countries have greatly reduced their dependence on imported oil or have nearly eliminated it. We need aggressive energy policies to get us of off imported oil. We may very well have reached Peak Oil. China and India industrializing have left us little time to waste with one billion cars in the world by 2020.

[darkfyreaol]

Enter the Tesla Roadster. http://www.teslamotors.com

[oldpilot954]

I was appalled for several years at the gas guzzler designs of US manufactrers. I was willing to buy a fuel efficient US vehicle but to get them I had to drive something that had the ride and comfort of a go-cart but not the handling. So I bought a US built van that rides and drives nicely and gets 16 mpg on trips. At 170,000 is has had 3 tranmissions ($1200-$1300 for overhauls), several A/C compressors ($900-$1000), major engine work (once)and is currently receiving it 3rd in-tank fuel pump ($600-$700). My daughter''s Toyota on the other hand rode and drove nicely and everything worked on it until it was wrecked beyond repair at 346,000. It got in the low 30s for gas milage. I did have to replace the CV joints at just under 300,000 miles. You tell me which gave better service!

[ibzjem]

Bring back the electric car. We had the technology over 10 years ago. Watch "Who Killed the Electric Car?" Great documentary. I saw an EV-1 up close while in college building solar powered electric cars. Long before GM killed it.

Point is: we have the technology to get over oil, but big OIL and the auto companies bought the rights and killed it.

[closethippy1]

What brand of car did the Flinstones drive? It has the highest MPG in the industry, doesn''t it?

[incog-nito]

Many Toyotas have been collapsed at 200,000 mileage.
I think Asian car manufactures did very good PR job in US market. They also charge you a lot on parts.

Just do a little math. You spend several thousands more to buy an Asian car in the hope that you can resale with higher price. How much the difference. Do you get back all extra you put upfront for the car with compound interest for several years? Besides that you are killing your fellow citizen''''s jobs and finally yours too.

Posted by nanv102 at 09:07 PM : Sep 24, 2008

First, was that your personal experience that "many Toyotas collapsed a 200,000 miles", or did you make that up?

Second, what PR by Asian makers? Is that the same PR done by independent survey groups by Consumer Reports and J.D. Powers that consistently rank Asian imports at the top in terms of quality?

Third, are you sure you''re buying "American"? Ford and GM moved a lot of plants to Mexico and other countries to cut costs, yet apparently forgot to pass on the savings to consumers. On the other hand, Honda, Toyota, and Nissan have built plants here in the U.S., creating good paying jobs here.

Fourth, regarding resale value, I recently helped a relative shop for a used car. Everywhere I went Asian imports consistently have higher resale value. A 4-cylinder Honda Accord held up much better than a bigger, more expensive when new, Cadillac with a V-8. I asked the salespeople and the answer was always the same: quality.

[rhs648]

It was only three years ago Bush said "we have to wait for the science on global warming". That same year we saw the CEO of GM on TV say "We''''re not going to build hybrids because the public won''''t buy them". I''''m so tired of being lied to by my "leaders". They know all this data before us John Q''''s but they''''ll say absolutely anything to get the results they want. WAKE UP AMERICA! I know it''''s awful tough to make extra time to do the job our crook leaders are paid to do, but you know what they say about dirty jobs. WAKE UP!

Posted by aerhed

Part of the problem is that many Americans are not proactive. We tend to wait for disaster before we react. We have been warned for years that oil is becoming scarce and would become expensive. However, we ignored the warnings. Three years ago, most Americans probably would not seriously consider buying a hybrid. Sadly, our leaders tend not to be proactive, too. Otherwise, we would have worked toward being independent of foreign oil thirty years ago when we faced long lines at the pumps.

[aerhed]

My mom bought a prius 2001. My wife bought a prius 2002. Both still run flawlessly. My bro-in law bought a neon 2005. It''s junk. Shaky and knocky. Last year my Dodge pickup had high miles and got 17 mpg. I would have had to buy a new one by now except...I bought a prius 2008 and saved $4000 last year in gas just going to work. Faster, quieter, cheaper, safer, better handling. Whats wrong with that? Plus I still have the pickup truck when needed.

[nanv102]

I have a domestic car with mileage 290,500. It still looks very good and runs fine. I just took a round trip from BHM to NY.

Many Toyotas have been collapsed at 200,000 mileage.
I think Asian car manufactures did very good PR job in US market. They also charge you a lot on parts.

Just do a little math. You spend several thousands more to buy an Asian car in the hope that you can resale with higher price. How much the difference. Do you get back all extra you put upfront for the car with compound interest for several years? Besides that you are killing your fellow citizen''s jobs and finally yours too.

[nanv102]

I have a domestic car with mileage 290,500. It still looks very good and runs fine. I just took a round trip from BHM to NY.

Many Toyotas have been collapsed at 200,000 mileage.
I think Asian car manufactures did very good PR job in US market. They also charge you a lot on parts.

Just do a little math. You spend several thousands more to buy an Asian car in the hope that you can resale with higher price. How much the difference. Do you get back all extra you put upfront for the car with compound interest for several years? Besides that you are killing your fellow citizen''s jobs and finally yours too.

[aerhed]

It was only three years ago Bush said "we have to wait for the science on global warming". That same year we saw the CEO of GM on TV say "We''re not going to build hybrids because the public won''t buy them". I''m so tired of being lied to by my "leaders". They know all this data before us John Q''s but they''ll say absolutely anything to get the results they want. WAKE UP AMERICA! I know it''s awful tough to make extra time to do the job our crook leaders are paid to do, but you know what they say about dirty jobs. WAKE UP!

[toshi43]

MPG has ALWAYS been important to me, but I''m not American...

[downsteamjim]

I want to read about the 250 mpg in the city as shown in the picture with this article.

[enriquecaliente]

"And savvy buyers also look at quality and reliability. That is why GM, Ford and Chrysler''''s sales are not only slipping but sagging."

I don''t know about that. I''ve owned both foreign and domestic vehicles and found both to work just fine as long as you take care of them. Of course I could have been luck so far. But I love my Jeep as much as I loved my corolla/tercel. Both work just fine.

[rf35]

What a perfect illustration of what is wrong with our economy. People are too stupid to understand that "Cost" and "payments" are basically the same thing.
Posted by DoodDad at 02:25 PM : Sep 24, 2008

Not necessarily. You could easily wind up with higher monthly payments on a car with a lower sticker price than with a higher one. The monthly payment amount depends on financing variables such as interest rates and the term, which are partially dependent on the sticker price.

[jjp735i]

Now if only the government would give us true MPG, instead of the half baked test they use now to come up with the figure.

[dooddad]

The story says "The No. 1 factor remained sticker price, which 40 percent of buyers cited as a reason for turning down a car. The No. 2 factor was a car''s monthly payments."

What a perfect illustration of what is wrong with our economy. People are too stupid to understand that "Cost" and "payments" are basically the same thing.

[djberson]

Wow, talk about making "news" out of the obvious. Gee, its hot out, people are eating more ice-cream.