With Cheaper Gas, Hybrid, EV Owners Swapping For SUVs

You might not be that surprised to see more and more SUVs on the roads lately, given that gas is still on the cheaper side. But what might be a bit shocking is that many of those SUV owners are drivers who traded in their hybrid and/or electric vehicles (EVs) to buy a "gas guzzler." It seems that the lure of cheaper gasoline is too strong to resist, even for owners of alternative fuel vehicles.

 A recent study by Edmunds.com shows that only 28 percent of people who owned a hybrid or EV vehicle traded their car in for a similar model. That number was at 38 percent just one year ago. The website also shows that hybrid and EV owners looking to trade-in are most likely to swap their "green" machine for an SUV almost 34 percent of the time. Twenty-five percent of EV trade ins alone went towards an SUV this year, while just five percent went towards another EV.

Compact cars are second to SUVs on this list at 12 percent, then luxury cars at 11 percent, and pickup trucks at just 5 percent.

"SUV sales are up 22 percent in the last five years, and almost every other segment has suffered as a result," said Jessica Caldwell, Director of Edmunds.com Industry Analysis. "It’s especially true for hybrids and EVs, which generally don’t offer the size that today’s shoppers crave."

Falling gas prices are also responsible for this sudden shift in hybrid and EV sales. Because fuel prices are still under $2 per gallon, many drivers don't see the need to pay an alternative fuel vehicle when they can buy a traditional vehicle that still gets around 30 mpg. They can still say they are doing their part for the environment at a much lower price point.

However, this isn't a death knell for the EV market. The recently redesigned Chevrolet Volt and the release of cars like the Hyundai Sonata plug-in have helped sales in the segment jump 40 percent from this time last year.