Car Buyers Willing to Pay a Premium for Hybrids But Not Give Up Control in a Crash

With the price of gas quickly killing off SUVs and making hybrids seem more sexy, a new study by J.D. Power and Associates shows that people will spring for a leaner and greener vehicle both before and after they find out it will set them back on average $5,000.

JDPAs' U.S. Automotive Emerging Technology Study annually measures consumer familiarity, interest and intent to purchase the latest car gadgets and gizmos, and for the first time in several years the cost of buying a hybrid was added to the study. The 2008 results found that 72 percent of the 19,000 consumers surveyed were "definitely/probably" interested in having hybrid-electric technology in their next vehicles before the price was revealed. After learning that it would cost them five grand, 46 percent said they could still hang with buying a hybrid.

Of course, it doesn't take a survey to determine that high gas prices and the benefits of going green are resonating with U.S. car buyers, but the J.D. Power study shows they are increasingly willing to pay for it.

JDPA's Mike Marshall said that in past studies, purchase intent decreases incrementally as the price of new car tech climbs higher. "You'll usually see a huge drop off at $1,500," he said. "But the drop-off was nowhere near what I thought it would be in this case."

The study also found that clean diesel generated low interest, which is attributed to lack of knowledge about the technology -- and the stigma associated with the old dirty diesels.

But JDPA predicts that as consumers become more hip to the benefits of clean diesel and as a new generation of oil burners hit the road, interest in the technology will increase.

"Right now there's very little awareness of clean diesel," Marshall said. "And even among those who are aware, a lot of them don't realize that it's much different."

The study also detailed consumer interest in the latest and greatest technology, and found it highest for blind-spot detection (76%), backup assist (74%) and navigation (73%) before the price was revealed, while backup assist (68%), adaptive headlights (65%) and wireless connectivity ranked at the top after respondents found out the cost.

And then shopped for a portable nav system at fraction of the price of an in-dash.

Marshall said the study has shown a steady decline in pre- and post interest in in-dash nav over the past few years. "But it's much worse this year," he added. "It's third to last after we revealed the price. Joe Consumer is thinking, 'For a lot less money I can have a portable."

Bluetooth connectivity made a considerable jump in desirability after the average price point of $200 was revealed, and the increased interest is largely credited to hands-free phone laws that to go into effect in California and Washington July 1.

The study also found that among those interested in collision-mitigation systems -- which gives a driver visual and audible warning of an impending collision and can automatically apply the brakes, tighten seat belts, adjust seats and ready the airbags -- one in four said they are waiting for the technology to improve. Or that they don't want to relinquish control of the vehicle even if they're about to crash.

"With passive safety systems, there's very little concern," said Marshall. "But as soon
as the vehicle starts doing something for you with respect to the
driver, that's when there's a lot of concern among respondents."

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