analysis
Even the Least Expensive Cars to Fuel Could Benefit from Higher Fuel Economy Standards
In the car market, vehicles with the best fuel economy are consumers’ top choices. In 2001, the cars ranking among the 10 least expensive to fuel sold 600,000 more units than did cars ranking among the 10 most expensive to fuel. This suggests that, when given a viable choice, consumers prefer gas-saving vehicles. Unfortunately, the data to make a similar comparison with trucks are not available.
Although consumers who bought vehicles that get better mileage to the gallon are paying less at the pump, they could still enjoy substantial savings if automakers used available technologies to increase gas mileage even more. | The 10 Least Expensive Light Trucks and Cars to Fuel Among Popular Models | | Rank | Light Trucks | Cost of Fuel in 2002 | Lifetime Fuel Cost | Payback Period (yrs) | Potential Fuel Savings in 2002 | Lifetime Net Savings | | 1 | Honda CR-V | $ 908 | $ 7,870 | 2.4 | $ 210 | $ 1,316 | | 2 | Ford Escape | $ 1,015 | $ 8,797 | 2.4 | $ 210 | $ 1,316 | | 3 | Honda Odyssey | $ 1,024 | $ 8,878 | 2.1 | $ 234 | $ 1,530 | | 4 | Dodge Caravan | $ 1,046 | $ 9,068 | 2.1 | $ 241 | $ 1,593 | | 5 | Ford Windstar | $ 1,050 | $ 9,900 | 2.1 | $ 242 | $ 1,600 | | 6 | Toyota Tacoma | $ 1,063 | $ 9,215 | 2.0 | $ 245 | $ 1,627 | | 7 | Chrysler Town & Country | $ 1,111 | $ 9,630 | 2.0 | $ 256 | $ 1,173 | | 8 | Ford Ranger | $ 1,173 | $ 10,165 | 1.8 | $ 271 | $ 1,885 | | 9 | Chevrolet S10 | $ 1,192 | $ 10,333 | 1.8 | $ 275 | $ 1,885 | | 10 | Chevrolet Blazer/TrailBlazer | $ 1,200 | $ 10,402 | 1.8 | $ 277 | $ 1,900 | | Average Light Truck | $ 1,214 | $ 10,502 | 1.8 | $ 280 | $ 1,928 | | | | Rank | Cars | Cost of Fuel in 2002 | Lifetime Fuel Cost | Payback Period (yrs) | Potential Fuel Savings in 2002 | Lifetime Net Savings | | 1 | Honda Civic | $ 625 | $ 5,417 | 3.8 | $ 133 | $ 652 | | 2 | Toyota Corolla | $ 638 | $ 5,532 | 3.8 | $ 133 | $ 652 | | 3 | Saturn S series | $ 705 | $ 6,107 | 3.3 | $ 150 | $ 798 | | 4 | Nissan Sentra | $ 737 | $ 6,386 | 3.2 | $ 157 | $ 858 | | 5 | Ford Focus | $ 747 | $ 6,477 | 3.1 | $ 159 | $ 877 | | 6 | Hyundai Elantra | $ 758 | $ 6,570 | 3.1 | $ 159 | $ 877 | | 7 | Dodge Neon | $ 781 | $ 6,766 | 3.0 | $ 166 | $ 938 | | 8 | Chevrolet Cavalier | $ 798 | $ 6,920 | 2.9 | $ 174 | $ 1,011 | | 9 | Volkswagen Jetta | $ 820 | $ 7,109 | 2.9 | $ 174 | $ 1,011 | | 10 | Toyota Camry | $ 824 | $ 7,137 | 2.9 | $ 175 | $ 1,017 | | Average Car | $ 868 | $ 7,521 | 2.7 | $ 184 | $ 1,099 | NOTES
- Based on vehicle models with sales of at least 100,000 units in 2001.Sales data from: Automotive News, 2002 Market Data Book, May 2002.
- Annual mileage assumed to be 15,000 consistent with the average for the first 3 years of ownership. Lifetime mileage is set to 170,000 miles over 15 years.
- Gasoline prices continually fluctuate, but the projected average for this year is near $1.40 per gallon according to the Energy Information Administration (http://www.eia.doe.gov/emeu/steo/pub/pdf/a4tab.pdf).
- Potential savings for light trucks calculated based on a 30% improvement in fuel economy per Feng An et. al., Near-Term Fuel Economy Potential for Light-Duty Trucks, SAE paper 2002-01-1900. Potential savings for cars is based on internal analysis using the same methodology.
- Fuel economy and class definitions from EPA, Light-Duty Automotive Technology and Fuel Economy Trends 1975 Through 2001, or from www.fueleconomy.gov as necessary.
- Lifetime costs/ savings include a real discount rate of 5%, consistent with a nominal car loan interest rate of 8%. |
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