Fuel Efficient Cars - Still the Smart Buy?
Six months ago getting better miles per gallon was one of the hottest topics in the auto industry. Fast Forward and we have a declining economy and the price of gasoline has dropped dramatically. So the question is, do we still buy a Fuel Efficient Car when the price of gasoline is well below $2.00 a gallon?
We are going to use a Question and Answer format to get answers to our questions. I have selected David Lee, the General Manager of Madison Honda to be our Automobile Industry Expert.
Why David? Why Honda? and Why Madison Honda? Good Questions, well, as you know I have a blog and the Business Bits With Jim Farrell Podcast Show. I also have Facebook, MySpace, Linkedin, and Twitter open on my computer for the better part of most days. Smart Businesses in all industries are using Social Media today, and have found it much more effective than traditional advertising. Madison Honda and I hooked up on Facebook, and I was impressed as I do not see many New Jersey Auto Dealerships in the Social Media Space. Thus the reason for David of Madison Honda, so, without further ado, lets gets some answers from David.
JF: What makes a car fuel efficient as opposed to being a gas guzzler?
DL: Miles Per Gallon is the key criteria, when you approach 30 miles per gallon the vehicles start to be considered fuel efficient.
JF: With gas prices below $2.00 a gallon, why does it still make since to purchase a Fuel Effecient Car?
DL: Jim, current events and the strength of the economy will have a huge impact on the price of gasoline. Today’s cheap gas, can be tomorrow’s wildly expensive gas. Just look what happened over the last six months, the price of gas went from around $4.50 a gallon to significantly less than $2.00 a gallon. Who is to say it won’t be $7.00 a gallon, or $.50 a gallon, point is gas prices are unpredictable and the trend in the global economy is increasing moving toward green cars, so it still makes perfect since to purchase a fuel efficient car.
JF: Thanks David. So we hear the term Hybrid Car quite often, what is a Hybrid Car?
DL: A Hybrid Car is one that combines two sources of energy, gas and electric. When reaching cruising speeds, the Hybrid Car will switch to using electric energy from a battery source.
JF: So David, with so much information available today, how does the informed automobile consumer go about shopping for a fuel efficient car?
DL: Good question, simple answer, do your homework, research the internet and come prepared with information when purchasing a fuel efficient car. The informed automobile consumer will not only know their price points, but just as important, the quality, reliability, and reputation of the Car Manufacturer and New Jersey Auto Dealerships.
JF: Great, my readers are armed with good information; tell us what makes Honda so dominant in the Fuel Efficient Car Market?
DL: Honda was the Pioneer Automobile Manufacturer in the Fuel Efficient Car Market and has consistently been the early adapter for the global automobile industry. Greencars.org list four Honda’s in its list of the top 12 greenest cars for 2008. The Honda Civic GX was rated #1 on the Greencars.org list. Honda has consistently been the leader in the Fuel Efficient Car Market, so it would be wise to consider the Honda in your search for a Fuel Efficient Car.
JF: David thanks for your time, if anyone has a question, what is the best way to reach Madison Honda?
DL: Jim, our phone # is 973-822-1600 and Web site www.madisonhonda.com
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December 16th, 2008 at 3:24 pm
Thanks for the very timely piece…
December 16th, 2008 at 5:32 pm
Thanks for showing me this, Jim. I would have asked David why hybrids cost so much more than regular cars. Right now, the savings in fuel costs aren’t enough to offset the increased cost of the hybrid cars. Hopefully, as they become more widely accepted and perhaps even become the standard, the spreads will narrow and there really will be a cost savings and not just for those that drive alot.
–Karen
December 16th, 2008 at 5:39 pm
Thanks for your reply Karen, I will have David answer your question.
Happy Holidays to you and your family,
Jim
December 17th, 2008 at 12:22 pm
Hi Karen…in my opinion you are correct. I think in the not too distant future as Hybrids become the norm, the pricing should decrease. Right now the combination of costs of evolving technology, new/additional manufacturing materials, and lower volume production all add up to a higher cost of a Hybrid vehicle. If you do the optimum type of driving that would offset that additional expense right now with savings over time, it would make sense, but, the average consumer doesn’t.
Have a great holiday!!
December 17th, 2008 at 7:56 pm
Thank you for this information JIm and David. I write commercial insurance for business throughout new jersey, but my agency, the Pavese-McCormick Agency, also provides personal insurance to our clients. Perhaps an incentive to purchase a hybrid car would be to reduce annual insurance costs for the consumers with these fuel efficient vehcles. A credit could be applied to those who participate. David, do you think this incentive would help increase awareness and/or sales for hybrid cars?
December 26th, 2008 at 11:09 am
Jim, Great information that the public can use. I think most want to help with protecting our environment and you have provided them with information they can use when looking for a car.
Sam
December 27th, 2008 at 12:13 pm
Robin….I think you’re hitting on something that would definitely raise an eyebrow of the comsumer that’s on the fence about purchasing a hybrid vehicle right now. I do think it would raise the general awareness of hybrids also, much like the awareness is out there of a federal tax incentive on hybrids. Good thoughts…..on my end I’d like to see that go into effect.
Have a happy new year!!!
December 29th, 2008 at 12:06 pm
This is great information. Gas prices are so volatile that having proactive ways to save both the environment and some money is a huge advantage.
As a member of the BlueClaws front office, I recently had the chance to attend the Baseball Winter Meetings and green initiatives were a big part of the seminars and discussions. This is just more valuable info that we can use to inform our fans as well now.
December 29th, 2008 at 9:00 pm
Thanks Zack, let me know if you are going to repeat the “BlueClaws Go Green” event. I was out of town for the last one.
Jim
January 11th, 2009 at 5:56 pm
Dear David and Jim,
This article has been most helpful in clarifying some of the questions I had regarding purchasing a car. Because of Jim Farrell’s blog, I contacted Madison Honda. I spoke at length with Matthew, who is also very knowlegable and answered all my questions.
I shall be into visit Madison Honda in the next few days, most definitely. Thank you for the Blog Jim!!!!
Elizabeth