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June 2008
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Shift in car-buying priorities
Car buyers are changing the national new-car fleet by shunning large trucks and SUVs, while gravitating toward smaller, more efficient models. About one fifth of the group surveyed this year is in the market for a new car, and fuel economy is their most important consideration-nearly double the share recorded in 2007 for that attribute. Safety, reliability, and quality remain high concerns, though performance has dropped significantly in importance.

Of course, buyers could get more for their money from a used car that has already gone through its period of greatest depreciation in the first two to three years. (Looking for a reliable used car at the right price—Get a Consumer Reports New or Used Car Price Report.)

Women are far more focused on fuel economy, with 38 percent citing it as the most important factor, while only 24 percent of men felt the same. For men, the standout issue is reliability, with 31 percent claiming it is their number one consideration. Other splits along gender lines see women drawn to value and men favoring performance. Although often touted in advertising, technology/innovation resonated with only one percent of respondents planning to purchase a new car.

Following are the most important factors in vehicle selection among car buyers:
Fuel economy 31% (up from 16% in 2007)
Reliability/quality 26*
Safety 18 (down from 21)
Design/style 10 (up from 7)
Value 9 (down from 12)
Performance 5 (down from 19)
* (Last survey measured only quality; it was at 17 percent.)



WHAT CAR BUYERS WANT

Nearly 80 percent of car shoppers want better fuel economy, led by women, younger adults, and those with a household income under $75,000. More than half say they want much better fuel economy, yet 69 percent want a same-sized or larger vehicle. No respondents wanted a vehicle that is much larger, suggesting automakers face an immense challenge in getting new customers into full-sized pickup trucks and SUVs.

Compared with the previous survey, we find motorists are more interested in alternative engine types (80 percent) than just a year ago (47 percent).

Among those planning to purchase a new car, this is the percentage who are considering alternative engine types:
Flex-fuel 37% (up from 24% in 2007)
Hybrid 32 (up from 28)
Diesel 30 (up from 11)


As hybrid gasoline-electric cars have become more commonplace, the increased interest is not surprising. But other figures caught our attention. The dramatic increase in those considering a flex-fuel engine (which can run on gasoline or E85 ethanol) speaks to the desire to reduce our dependency on foreign oil, a key concern expressed in the survey. But it doesn't reflect the practical realities of limited E85 availability, significantly diminished fuel economy when running on E85, and the complicated effects of ethanol derived from food crops. Given the modest cost for an E85-compatible engine to be manufactured, flex-fuel powertrains have long-term appeal, but they will not satisfy motorists' urgent economic goals in the short term.

Diesel saw the greatest spike in interest, which is surprising given the higher cost of diesel fuel and the limited selection of models. The European market is filled with thrifty, small-displacement diesels that deliver stunning fuel economy. But such bountiful, efficient options do not exist in the United States yet. Looking past the higher fuel cost and purchase price for an equipped car, diesel engines can deliver about 30 percent more fuel economy than a comparable gasoline engine. Their benefits are best suited to long-distance drivers who intend to hold on to a car for many years.


DOWNSIZE AND COMPROMISE

On initial read, it might appear that many consumers want something for nothing, demanding more fuel economy without compromising on the vehicle's size. The reality is that many people purchase vehicles to fulfill specific needs. As children grow, many families are naturally reluctant to buy a smaller model. Recreational and vocational demands often dictate the size and function of a vehicle.

Ultimately, most drivers could make some compromise to improve fuel economy.

What drivers would do to reduce amount spent on fuel:
Pay extra for more efficient vehicle 54%
Compromise on size or capacity 49
Compromise on amenities or comfort 38
Compromise on performance 31
Compromise on safety 15


More than one quarter of consumers have considered the ultimate vehicle downsize-giving up two wheels. Among them, 18 percent have contemplated a motorcycle and 14 percent were drawn to motor scooters. Men and respondents aged 18-34 were most fond of this alternative.

By better balancing needs and wants, motorists may find smaller, less expensive vehicles can work for them and save them money. Downsizing can pay off in the long run, bringing with it environmental and fuel-consumption benefits on a personal and national scale. But even this bold move might have unexpected costs, as reported in When to downsize your car.


WHO IS TO BLAME

As the presidential election draws closer, the political climate is heating up and energy policy is among the biggest issues. From the survey, we found that consumers are frustrated about the escalating cost of driving, and right or wrong, 99 percent have strong feelings about who is to blame.

Women, more strongly then men, responded that the lack of an effective national energy policy and oil companies are the leading causes for the high gas prices. On average, ¾ths of the respondents singled out what they believe to be the causes of higher gas prices. The 18-34-year-old group put more blame on energy policy and the Bush administration in general. Otherwise, the results are largely similar across age groups, with the exception of those 55 and older, who put more weight on Congress and refinery restrictions.

Who do you blame for higher gas prices?
Failure of government to implement an effective energy policy 77%
Oil companies 75
Foreign oil producers 70
Congress 68
Middle East conflict 68
Bush administration 64
Rising demand from developing nations 64
Restrictions on increasing refinery capacity 62
Restrictions on domestic oil exploration 61


Balancing out this question, we also asked what actions respondents felt the federal government could take to reduce fuel costs. Overwhelmingly, increased support of alternative energy development topped the list, though there was majority consensus on several other actions.

Agreement with potential actions involving the federal government.
Increase support for alternative energy development 90%
Negotiate lower prices with oil-exporting nations 84
Encourage conservation through tax incentives, alternative transportation 83
Allow more drilling in the U.S. and offshore 81



BOTTOM LINE

Motorists have turned their words into action, modifying their driving behavior and spending habits to save on fuel, and address larger issues of environmental conservation, and reduce dependence on foreign oil.

With increased blame put on the government for rising fuel prices, Americans might factor energy concerns heavily as they go to the polls in November. Even still, there is no imminent relief in sight, and fuel prices and the rising cost of living are taking their toll on lifestyles and bank accounts.

For now, drivers are encouraged to follow our advice for maximizing the fuel economy of their current model. When it's time to replace the current car with either a new or used model, we hope people will be right-sizing to a more fuel-efficient model, while still considering our overall ratings based on more than 50 tests, reliability, and safety. (Subscribe to ConsumerReports.org for complete pricing, ratings, and owner cost data to ensure you get the most for your money.) Choosing the right car will help you to save at the pump today, and offer relatively low owner costs for years to come.

Visit our guide to green driving for lists of the most fuel-efficient models, gas-saving tips, and guides to alternative powertrains.