Alternative-Fueled Vehicles Seriously Considered by One-Third of U.S. Adults Planning to Purchase or Lease a New Vehicle
- Top reasons for considering an alternative-fueled vehicle include the effect on the environment and lower fuel costs
- Annual Percentage Rate (APR) seen as the most important financial factor when financing or leasing a new vehicle
ROCHESTER, N.Y., April 24 -- A recent Wall Street Journal Online/Harris Interactive Personal Finance Poll reveals that one-third (33%) of U.S. adults who plan to purchase or lease a new vehicle say they are most likely to seriously consider an alternative-fueled vehicle for their next purchase. Most (92%) of these adults are willing to pay more for it than a traditional, gasoline-powered version of the same vehicle. Top reasons for considering an alternative-fueled vehicle include concerns for the environment and the cost of fuel. The survey also explores how consumers plan to pay for their next new vehicle, and what financial factors are most important to them when making their next new vehicle purchase.
These are some of the results of an online survey of 2,516 U.S. adults conducted by Harris Interactive(R) between April 4 and 6, 2006 for The Wall Street Journal Online's Personal Journal Edition.
Types of vehicles considered
Almost three in five (58%) adults plan on purchasing a new vehicle, and while 37 percent say they are most likely to seriously consider a traditional, gas-fueled vehicle, many say they will seriously consider a hybrid (25%), ethanol-fueled (7%), or diesel-fueled (2%) vehicle. Those most likely to consider alternative-fueled vehicles include:
-- Those who live in the West (38%) -- Young adults age 18 to 34 (36%) -- College graduates (44%) -- Those with an income of $75K or more (40%) Paying more for alternative-fueled vehicles
Only eight percent of adults who will likely consider an alternative- fueled vehicle say they would not be willing to pay a penny more for a vehicle that runs on an alternative fuel over a traditional, gasoline-powered version of the same vehicle. Among those who are willing to pay extra, the average amount willing to be paid is $9,258. Some interesting differences emerge when examining the data by region, gender and income.
-- On average, those in the South ($10,786 extra) are willing to pay more
for an alternative-fueled vehicle than those in the West ($9,343
extra), Midwest ($8,648 extra) or Northeast ($7,418 extra).
-- Women are willing to pay $11,274 more on average for a vehicle that
runs on alternative fuel, compared to men who are willing to pay $7,506
more on average.
-- On average, those with incomes of $50K to $74.9K are willing to pay
more than those making less or more than them for an alternative-fueled
vehicle ($10,376 extra for those making $50K to $74.9K compared to
$7,484 extra for those making less than $35K, $8,501 extra for those
making $35K to $49.9K, and $8,594 extra for those making $75K or more).
Reasons for choosing alternative-fueled vehicles
Among those who say they would seriously consider a vehicle that runs on alternative fuel, almost half (47%) say their main reason for doing this is because it is better for the environment. Another 45 percent say their main motive is because their fuel costs will be lower. Substantially fewer adults cite the fact that they can take advantage of the Federal Clean-Fuel Tax Deduction (3%) and that they will be able to drive in High Occupancy Vehicle (H.O.V.) and carpool lanes (1%) as their most important reason. Some interesting demographic differences exist:
-- Those in the Northeast (54%) and Midwest (55%) are most likely to cite
fuel costs as their main reason for considering a vehicle that runs on
alternative fuel, while those in the West are most likely to cite
environmental concerns (64%).
-- Women are almost twice as likely as men to cite environmental concerns
as their main reason for consideration (62% and 34%, respectively),
while over half (52%) of men cite fuel costs for their main reason
compared to 36 percent of women.
Scott Upham, Senior Vice President of the Automotive and Transportation Research Practice at Harris Interactive comments, "We've seen that more and more U.S. consumers are realizing that alternative-fueled vehicles bear a price increase over similarly equipped gasoline-based vehicles, but that many are willing to make this choice due to their own environmental beliefs or sensitivity to high fuel prices."
Purchase plans and important factors for acquiring a new vehicle
A majority of adults (61%) who plan on purchasing a new vehicle most likely plan to acquire it through financing or leasing over several years. Those ages 55 and older are least likely (48%) to say they will finance or lease their next new vehicle; however, they are more apt than any other age group to say they would pay cash for the entire vehicle cost (34%). For those planning to finance or lease their next new vehicle, the most important financial factor for them is the Annual Percentage Rate (APR) (30%), followed closely by the down payment requirements (25%). Other important financial factors include the length of contract (13%), rebates or incentives offered at time of sale (11%), the lowest initial purchase price (10%), and the highest residual value or resale value (6%).
TABLE 1A
TIMING ON PURCHASING A NEW VEHICLE-BY GENDER AND AGE "When do you plan on purchasing or leasing your next new vehicle, that is, one
not previously owned? For the purpose of this survey, the term "vehicle'
includes cars, trucks, minivans, vans, and SUVs. It does not refer to
motorcycles, mopeds, boats, or other recreational vehicles."
Base: All adults
Gender Age
Total Male Female 18-34 35-44 45-54 55+
n=2,516 n=1,252 n=1,264 n=746 n=516 n=448 n=806
% % % % % % %
Plan On Purchasing/
Leasing New
Vehicle (Net) 58 63 54 63 59 56 55
In the next 12
months 10 11 9 13 12 9 8
In the next 1-2
years 18 20 16 18 17 21 16
In the next 3-4
years 16 18 14 15 17 14 17
Longer than 4
years from now 14 14 15 17 13 12 15
I do not plan on
purchasing or
leasing a new
vehicle. 42 37 46 37 41 44 45
Note: Percentages may not add up to 100% due to rounding.
TABLE 2A
TYPES OF VEHICLES BEING CONSIDERED-BY REGION "Thinking about the next new vehicle that you plan to purchase/lease, which of
the following types of vehicles are you most likely to seriously consider?"
Base: Adults who plan on purchasing/leasing new vehicle
Region
Total Northeast Midwest South West
n=1,523 n=380 n=435 n=415 n=293
% % % % %
A gasoline-fueled vehicle
(e.g., vehicle that runs
on gasoline only) 37 43 34 39 31
Considering Alternative
Fuel Vehicle (NET) 33 33 31 31 38
A hybrid vehicle (e.g.,
vehicle that uses a
combination of both a
gas engine and
electric motor) 25 27 18 25 29
An ethanol-fueled vehicle
(e.g., vehicle that runs
on unleaded gasoline and
ethanol fuel mixture) 7 5 12 5 6
A diesel-fueled vehicle
(e.g., vehicle that runs
on diesel fuel only) 2 2 1 2 2
Other 1 * 4 1 *
Undecided 29 23 32 28 31
* Less than 0.5%.
Note: Percentages may not add up to 100% due to rounding.
TABLE 2B
TYPES OF VEHICLES BEING CONSIDERED-BY GENDER AND AGE "Thinking about the next new vehicle that you plan to purchase/lease, which of
the following types of vehicles are you most likely to seriously consider?"
Base: Adults who plan on purchasing/leasing new vehicle
Gender Age
Total Male Female 18-34 35-44 45-54 55+
n=1,523 n=823 n=700 n=494 n=322 n=257 n=450
% % % % % % %
A gasoline-fueled
vehicle (e.g.,
vehicle that runs
on gasoline only) 37 39 34 36 39 42 34
Considering Alternative
Fuel Vehicle (NET) 33 34 32 36 34 35 28
A hybrid vehicle (e.g.,
vehicle that uses a
combination of both a
gas engine and
electric motor) 25 25 25 27 26 29 19
An ethanol-fueled vehicle
(e.g., vehicle that runs
on unleaded gasoline and
ethanol fuel mixture) 7 7 6 7 6 6 8
A diesel-fueled vehicle
(e.g., vehicle that runs
on diesel fuel only) 2 3 1 3 2 * 1
Other 1 1 1 2 1 -- 2
Undecided 29 25 33 26 26 23 36
* Less than 0.5%.
TABLE 2C
TYPES OF VEHICLES BEING CONSIDERED-BY EDUCATION "Thinking about the next new vehicle that you plan to purchase/lease, which of
the following types of vehicles are you most likely to seriously consider?"
Base: Adults who plan on purchasing/leasing new vehicle
Education
Total High Some College
School College Graduate+
or Less
n=1,523 n=181 n=623 n=719
% % % %
A gasoline-fueled vehicle
(e.g., vehicle that runs
on gasoline only) 37 42 36 33
Considering Alternative
Fuel Vehicle (NET) 33 19 37 44
A hybrid vehicle (e.g., vehicle
that uses a combination of both
a gas engine and electric motor) 25 15 26 34
An ethanol-fueled vehicle (e.g.,
vehicle that runs on unleaded
gasoline and ethanol fuel mixture) 7 3 9 8
A diesel-fueled vehicle (e.g.,
vehicle that runs on diesel
fuel only) 2 1 1 2
Other 1 2 1 1
Undecided 29 36 27 22
TABLE 2D
TYPES OF VEHICLES BEING CONSIDERED-BY INCOME "Thinking about the next new vehicle that you plan to purchase/lease, which of
the following types of vehicles are you most likely to seriously consider?"
Base: Adults who plan on purchasing/leasing new vehicle
Income
Total Less than $35K-$49.9K $50K-$74.9K $75K+
35K
n=1,523 n=378 n=198 n=269 n=360
% % % % %
A gasoline-fueled
vehicle (e.g.,
vehicle that runs
on gasoline only) 37 27 39 40 41
Considering
Alternative Fuel
Vehicle (NET) 33 36 22 28 40
A hybrid vehicle
(e.g., vehicle that
uses a combination
of both a gas engine
and electric motor) 25 26 16 18 30
An ethanol-fueled
vehicle (e.g.,
vehicle that runs
on unleaded
gasoline and
ethanol fuel
mixture) 7 8 5 9 7
A diesel-fueled
vehicle (e.g.,
vehicle that runs
on diesel
fuel only) 2 2 1 1 3
Other 1 2 3 2 *
Undecided 29 35 36 29 19
* Less than 0.5%.
TABLE 3A
EXTRA AMOUNT ONE WOULD PAY FOR ALTERNATIVE-FUELED VEHICLE-BY REGION
"What is the highest extra dollar amount you would be willing to pay for a
vehicle that runs on an alternative fuel over a traditional gasoline powered
version of the same vehicle? Please enter the amount to the nearest whole
dollar."
Base: Adults considering an alternative fuel vehicle
Region
Total Northeast Midwest South West
n=580 n=148 n=167 n=146 n=119
% % % % %
$0 8 4 9 5 12
$1-$1,000 27 25 32 31 19
$1001-$2,000 13 16 13 15 9
$2001-$5,000 19 30 16 13 22
$5001-$20,000 17 13 18 12 24
$20,001 or more 16 12 12 23 13
Mean (excluding 0) $9,258 $7,418 $8,648 $10,786 $9,343
Note: Percentages may not add up to 100% due to rounding.
TABLE 3B
EXTRA AMOUNT ONE WOULD PAY FOR ALTERNATIVE-FUELED VEHICLE-BY GENDER AND AGE
"What is the highest extra dollar amount you would be willing to pay for a
vehicle that runs on an alternative fuel over a traditional gasoline powered
version of the same vehicle? Please enter the amount to the nearest whole
dollar."
Base: Adults considering an alternative fuel vehicle
Total Men Women
n=580 n=329 n=251
% % %
$0 8 10 4
$1-$1,000 27 32 21
$1001-$2,000 13 17 9
$2001-$5,000 19 16 23
$5001-$20,000 17 12 22
$20,001 or more 16 12 21
Mean (excluding 0) $9,258 $7,506 $11,274
Note: Percentages may not add up to 100% due to rounding.
TABLE 3C
EXTRA AMOUNT ONE WOULD PAY FOR ALTERNATIVE-FUELED VEHICLE-BY INCOME
"What is the highest extra dollar amount you would be willing to pay for a
vehicle that runs on an alternative fuel over a traditional gasoline powered
version of the same vehicle? Please enter the amount to the nearest whole
dollar."
Base: Adults considering an alternative fuel vehicle
Income
Total Less than $35K-$49.9K $50K-$74.9K $75K+
35K
n=580 n=149 n=68* n=101 n=148
% % % % %
$0 8 4 15 4 10
$1-$1,000 27 34 30 28 23
$1001-$2,000 13 13 10 13 17
$2001-$5,000 19 11 10 13 30
$5001-$20,000 17 30 23 25 2
$20,001 or more 16 9 12 16 19
Mean (excluding 0) $9,258 $7,484 $8,501 $10,376 $8,594
Note: Very small base (n<100). Data should be used directionally.
TABLE 4A
REASON TO CHOOSE VEHICLE WITH ALTERNATE FUEL-BY REGION
"Please select from the list below the most important reason why you would
seriously consider a vehicle that runs on alternative fuel."
Base: Adults considering an alternative fuel vehicle
Region
Total Northeast Midwest South West
n=580 n=148 n=167 n=146 n=119
% % % % %
It is better for
the environment 47 40 36 44 64
My fuel costs will be lower 45 54 55 45 28
I can take advantage of the
Federal Clean-Fuel
Tax Deduction 3 3 2 5 2
I will be able to drive in
High Occupancy Vehicle (H.O.V.)
and carpool lanes 1 3 -- * 1
I like to keep up with
the latest trends -- -- -- -- --
None of these 4 -- 7 6 4
* Less than 0.5%.
Note: Percentages may not add up to 100% due to rounding.
TABLE 4B
REASON TO CHOOSE VEHICLE WITH ALTERNATE FUEL-BY GENDER AND AGE
"Please select from the list below the most important reason why you would
seriously consider a vehicle that runs on alternative fuel."
Base: Adults considering an alternative fuel vehicle
Total Men Women
n=580 n=329 n=251
% % %
It is better for the environment 47 34 62
My fuel costs will be lower 45 52 36
I can take advantage of the Federal
Clean-Fuel Tax Deduction 3 5 1
I will be able to drive in High Occupancy
Vehicle (H.O.V.) and carpool lanes 1 2 --
I like to keep up with the latest trends -- -- --
None of these 4 8 *
* Less than 0.5%.
TABLE 5A
PURCHASE PLAN FOR NEXT NEW VEHICLE-BY AGE "Thinking about your next new vehicle purchase/lease transaction, which of the
following best describes how you most likely plan to acquire your next new
vehicle?"
Base: Adults who plan on purchasing/leasing new vehicle
Age
Total 18-34 35-44 45-54 55+
n=1,523 n=494 n=322 n=257 n=450
% % % % %
Plan on Financing/Leasing Next
New Vehicle (NET) 61 64 72 66 48
Finance vehicle purchase over
several years 55 55 63 63 44
Lease vehicle over several years 6 8 9 3 4
Pay cash for entire vehicle cost 23 16 17 24 34
Undecided 15 20 10 10 17
Note: Percentages may not add up to 100% due to rounding.
TABLE 6A
MOST IMPORTANT FACTOR WHEN PURCHASING/LEASING A NEW VEHICLE-BY AGE
"Which of the following will be the most important financial factor to you
when making your next new vehicle purchase/lease transaction?"
Base: Adults who plan on purchasing/leasing new vehicle
Age
Total 18-34 35-44 45-54 55+
n=955 n=332 n=243 n=170 n=210
% % % % %
APR (Annual Percentage Rate) 30 23 30 40 31
Down payment requirements 25 24 24 31 24
Length of contract (longer contracts
can mean lower monthly payments) 13 12 13 5 18
Rebates or incentives offered at
time of sale 11 17 9 6 6
Lowest initial purchase price 10 12 9 10 8
Highest residual value
or resale value 6 6 6 3 9
Other 6 6 9 5 4
Note: Percentages may not add up to 100% due to rounding.
TABLE 6B
MOST IMPORTANT FACTOR WHEN PURCHASING/LEASING A NEW VEHICLE-BY INCOME
"Which of the following will be the most important financial factor to you
when making your next new vehicle purchase/lease transaction?"
Base: Adults who plan on purchasing/leasing new vehicle
Income
Total Less than $35K-$49.9K $50K-$74.9K $75K+
35K
n=955 n=236 n=137 n=196 n=235
% % % % %
APR (Annual
Percentage Rate) 30 32 30 22 31
Down payment
requirements 25 21 23 34 26
Length of contract
(longer contracts can
mean lower monthly
payments) 13 14 10 12 13
Rebates or incentives
offered at time
of sale 11 18 20 7 5
Lowest initial
purchase price 10 10 9 8 12
Highest residual
value or resale
value 6 3 2 9 7
Other 6 2 5 7 6
Note: Percentages may not add up to 100% due to rounding.
Downloadable PDFs of The Wall Street Journal Online/Harris Interactive
Personal Finance Polls are posted at
http://www.harrisinteractive.com/news/newsletters_wsjfinance.asp.
Methodology:
Harris Interactive conducted the online within the United States between April 4 and 6, 2006 among 2,516 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.
All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, nonresponse (including refusals), interviewer effects (when live interviewers are used) and weighting.
With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.
With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With a pure probability sample of 2,516 adults one could say with a 95 percent probability that the overall results would have a sampling error of +/- 3 percentage points. Sampling error for the various sub-samples shown in the tables would be higher and vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.
These statements conform to the principles of disclosure of the National Council on Public Polls.
About the Survey
The Wall Street Journal Online/Harris Interactive Personal Finance Poll is an exclusive poll that is published in the Personal Journal Edition of The Wall Street Journal Online at www.wsj.com/personaljournal.
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