2023 Toyota Tacoma Sr on 2040-cars

Auto blog

The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.

Toyota will retrofit late-model cars with new technology

Toyota will inaugurate a service called Kinto Factory that will add modern features like electronic driving aids to select late-model cars. The program will launch in Japan in January 2022, and it aims to let motorists benefit from new technology without having to buy a new car. Kinto Factory will initially offer customers two basic services: upgrading and remodeling. Upgrading is defined as retrofitting safety and convenience functions, like emergency braking assist, a blind spot monitoring system with rear cross-traffic alert, and a hands-free tailgate or trunk lid. Remodeling involves replacing worn or damaged parts inside and out, such as the upholstery, the seat cushions, and the steering wheel. Personalization will join the list of services at a later date, partly because it involves gathering data on how drivers use their car. The list of cars eligible to receive a makeover from Kinto Factory include the Prius, the Prius c (which is called Aqua in Japan), the Prius V (known as the Prius ? in its home country), the Lexus UX (pictured), and the Lexus NX. Since the program is launching in Japan, Kinto Factory will also work on vehicles we've never seen on American roads, like the Vellfire (a big minivan) and its upscale Alphard derivative. Pricing information and availability will be announced closer to the program's launch. Toyota notes that each upgrade will be available individually, so customers will be able to select precisely what's added to their car, and that all of the parts will be backed by a warranty. As of writing, Toyota hasn't announced plans to bring the Kinto Factory program to the United States. However, it added that the upgrades detailed above represent the program's first step, and it clarified that it's open to the idea of expanding the service in overseas markets.

Submit your questions for Autoblog Podcast #329 LIVE!

We're set to record Autoblog Podcast #329 tonight, and you can drop us your questions and comments via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #329
Subcompact sales slump, yet again