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As prices for used alternative fuel vehicles have plummeted this year, many analysts have attributed some of the drop to a level of consumer caution that still abounds years after the first hybrids hit the market

Survey results from AutoTrader.com released today affirm this assertion, showing there are still “significant gaps that need to be closed” in order for consumers to turn more often toward these fuel efficient rides.

The survey measured consumer attitudes concerning perception of diesels, hybrids, electric vehicles (EVs) and plug-in hybrids.

What the results showed is that even as new and used prices for these vehicles continue to come down, consumers are still most concerned about the cost of purchasing one of these rides.

Perceptions about battery life/range are also “working against” hybrid and plug-in vehicles, the site said.

Commenting on the news, Brian Moody, site editor at AutoTrader.com, said, “As automakers continue to invest in alternative fuel technologies to meet the ever-increasing fuel economy and emissions standards, it is important that they address car shoppers’ concerns about these vehicles if they want to accelerate adoption.”

And not surprisingly, with its highly popular Prius line, according to the survey, Toyota was identified as leading in the alternative fuel vehicle market with 48 percent.

Honda came in second with 28 percent and Ford rounded out the top three with 25 percent.

First, the good news …

 What were the top motivators cited as reasons to buy an alternative fuel vehicle, according to the survey results?

Apparently, emotion isn’t a factor — the reasoning is mostly practical.

Three of the top five reasons cited in the survey were related to saving money, through both fuel costs and tax credits.

“Better fuel economy” came in first at 70 percent, followed by “Cost of savings on gas” at 56 percent, “Cleaner emissions” at 37 percent, “Better for the environment” at 28 percent, and “Federal Tax Credit” at 24 percent, AutoTrader.com reported.

Breaking perception down by segment, hybrids and diesels were even with each other for being associated with “Good fuel economy.”

And hybrids and EVs were cited for their innovative technology.

Interestingly, the old technology seems to win out over the new in regard to reputation, practicality and value for the money; diesels came out on top in the categories.

But, of course, when it comes to being environmentally friendly, EVs were cited most frequently.  

Obstacles for Alternative Fuel Vehicle Market

An issue that has plagued the alternative fuel vehicle market since the very first diesels and hybrids: the price premium.

According to AutoTrader.com survey results, a large percentage of shoppers are unwilling to pay a premium over traditional-gasoline powered vehicles.

How do the numbers pan out?

Consumers who are aware of each vehicle type and are willing to pay a premium are as follows:

–    53 percent for diesels
–    51 percent for hybrids
–    41 percent for EVs
–    39 percent for plug-in hybrids.

Although consumers seem to recognize that diesels are more fuel efficient than traditional gasoline vehicles, the site said “Fuel expense” is keeping 55 percent of consumers out of this market.

“Too expensive to purchase” was cited by 46 percent and “Potentially high cost of maintenance” was cited by 45 percent.

On top of price, manufacturers may want to make an effort to change the face of the diesel market when trying to attract a “greener” audience.

“Diesels have come a long way since they were first introduced in the U.S., but that perception of the clunky car with black soot coming out the tailpipe persists,” said Moody. “Automakers who are investing in clean diesel technology need to ensure that they are clearly explaining and promoting how diesel technology has changed.”

For hybrids and plug-ins, cost is once again top of mind for consumers.

“Too expensive to purchase” was the top reason to decide against both hybrid and plug-in hybrids, at 66 and 71 percent, respectively, according to the survey.

But another concern came up, as well: battery-life issues.

“Battery life/range” was cited by 52 percent for hybrids, 67 percent for EVs and 64 percent for plug-in hybrids as the biggest issue when considering buying these models.

And “Concerned about charging stations” came in as the No. 2 reason to decide against an EV (cited by 66 percent).

“The fact that automakers have begun to reduce the prices of vehicles with electric powertrain technology is proof that they recognize that cost is a major factor affecting consideration and purchase of those vehicles,” Moody continued. “However, if they want to increase sales, they will need to keep making improvements in range, as well as charging infrastructure and technology to lessen the anxiety and perceived burdens these alternative technologies introduce into the ownership experience.”

Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.