MIAMI-Credit unions may want to hold off on special promotions for loans on hybrid vehicles until the cars' prices come down.
John Sternal, who was VP of LeaseTrader.com at the time he was interviewed by Credit Union Journal and has since left the company, cautioned that consumers' buying trends indicate that hybrids may be overpriced. "We have been tracking something interesting in the early days of this latest gas price spike. I am not sure hybrids are feeling the love this time around, and the biggest reason is that they are still priced at a premium."
Sternal believes the trend indicates that consumers are not feeling they are getting their money's worth with the super-fuel-efficient cars, not getting enough back at the pump to cover the higher prices. "You would think hybrid sales would be going like gangbusters now, but that is not the case. Consumers are saying the cars are not priced where they should be."
Where Consumer Attention Is Focused
Cars that are receiving lot of consumer attention, said Sternal, are smaller fuel-efficient gas vehicles like the Ford Focus and Chevy Cruze. "The carmakers have done an excellent job with these models that are getting some very good gas mileage and are not as expensive as hybrids. Hyundai advertises that it has four cars that get 40 miles per gallon. If the hybrid carmakers don't get more aggressive on pricing, I don't know that they will see the high hybrid sales they have hoped for."
John Worthington, SVP at the $6.6-billion Security Service FCU, is not sure about the current appeal of hybrids and electric cars in the southwest. Pointing out that a local energy company began installing plug-in stations for electric cars, Worthington observed, "There are 1.4 million people in this city and a total of 80 electric cars."
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