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Car Buyers Seeking Higher Fuel Economy

Consumers not lulled by current low gas prices

February 4, 2009

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Even though gas prices are a lot lower than they were a year ago, car shoppers have learned their lesson. Fuel economy ranks near the top in sought-after attributes, according to a survey by Consumer Federation of America.

CFA found that 76 percent of consumers in its energy survey are concerned about gasoline prices, which currently average around $1.90 a gallon. Moreover, in their next car purchase, they intend to buy a vehicle with fuel economy averaging five miles per gallon greater than the mileage of their current vehicle.

"The persistence of great concern about gas prices and dependence on oil imports shows a strong base of public support for significant improvements in motor vehicle fuel economy," said CFA Research Director and energy expert Mark Cooper.

"Despite pump prices averaging less than $2.00, Americans still plan to significantly increase the fuel economy of their cars when they make their next purchase," said CFA car expert Jack Gillis, longtime author of The Car Book.

Between February 2005 and January 2009, CFA has commissioned seven energy surveys undertaken by the Opinion Research Corporation. Each survey included a representative sample of more than 1,000 adult Americans and had a margin of error of plus or minus three percentage points.

Each was asked the question: "Thinking about the next five years, how concerned, personally, are you about the following three issues -- gasoline prices, U.S. dependence on Mid Eastern oil and global warming?"

Public opinion on these issues has varied little. On both gas prices and oil import dependency, large majorities have expressed concern and majorities great concern, except in the October 2006 survey when great concern on both issues dipped to 48 percent.

On global warming, from May 2005 on, a majority have expressed concern.

In April 2008 and this past month, survey respondents were also asked the likely gas mileage of the next motor vehicle they plan to purchase. Their response was 30 mpg last year and 29 mpg this past month even though the price of gas dropped from $3.50 in April 2008 to $1.90 in January 2009. In both surveys, they reported that their current vehicles got 24 mpg.

Apparently, one reason they intend to purchase a more fuel-efficient vehicle is their attitude towards future gas prices. Future car purchasers estimated that gas would be $3.07 per gallon when they made their purchase, with only 7 percent saying it would be under $2.00. "Nearly all Americans expect gas prices to increase in the future," said CFA's Cooper.

"Unfortunately, consumers are going to be sorely disappointed when they look at the 2009 models. Currently, of the nearly 1,200 2009 models with an EPA mpg rating, only 1.4 percent get over 30 miles per gallon. Five years ago, there were more vehicles with over 30 mpg than in 2009, said Gillis.

When asked whether they are driving more or less than a year ago, despite much lower gas prices today, 37 percent said less, and only 15 percent more, with 44 percent saying "about the same."

"At least to date, Americans view low gas prices as an aberration," said Gillis. "Expecting higher gas prices in the future, they are adjusting their driving habits as well as planning to purchase more fuel efficient vehicles," he added. "Stronger fuel efficiency standards not only respond to clear consumer expectations but will be critical to the survival of the U.S. auto industry," said Gillis.

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