Have you been thinking about getting a hybrid car so your gas bill doesn’t send you running for payday loans? Well, a lot of people have. Our transportation and energy industries are heading toward decreased dependence on fossil fuels, and it is a good thing, but it is still a few years before you have anything to worry about. However, regardless of how in vogue hybrid cars may be, there are a lot of myths and misconceptions about them. Granted, the electric car was invented in the 1890s, and there isn’t much of a reason why gas burning vehicles are still so prevalent, but let’s not get ahead of ourselves.
- Image via Flickr
You save more by NOT buying a hybrid
Bet you didn’t think that was possible, did you? It is the truth, and we are going to show you why. First is the initial purchase cost – hybrid vehicles cost about $3,000 more than their gas counterparts, and that is the lower end, and unfortunately no amount of payday loans will cover that cost. That said, the savings you are supposed to get are not exactly what you think – this may surprise you.
- Cost of gasoline – the cost of gasoline, we will assume for a moment is a constant, and right now it is about $1.50 per gallon.
- Mileage – let us assume a 10 mpg difference between Cars A (gas) and B (same model hybrid), where A gets 30 mpg and B gets 40 mpg.
- Average Miles Yearly – the average is between 10 to 15,000 miles. Let us assume 12,500 miles a year. So, yearly gasoline consumption:
- A (non hybrid): 12,500 miles a year/30mpg = 416.7 gallons
- B (hybrid): 12,500 miles/40 mpg = 312.5 gallons. Less gas used, ok.
Cost of gas:
- A – 416.7 gallons X $1.50 gal = $625.05
- B – 312.5 gallons X $1.50 gal = 486.75. Less money is spent on gas – but there is a difference of only $138.75.
Hybrid saves big – a whopping couple of hundred bucks per year at most
The average time an owner drives a vehicle is between 3 to 5 years. Assuming that a hybrid owner keeps the car for 5 years, that is less than $700 saved on gas. If the price difference is more than $3,000, you still have $2300 to make up for. Look at it this way: If you purchase a hybrid, and the mileage is 10 mpg better than the gas model, and the cost difference is $3000 (after clean vehicle tax credit) at $1.50 a gallon, it will take you about 22 years for a hybrid car to pay off.
Of course, the variables are the yearly mileage that you put on the hybrid and the cost of gasoline. If the figures are adjusted to the previous $4 per gallon and the same yearly number of miles, the annual savings works out to approximately $420. If gas goes back up to that amount, it will still be more than seven years before the difference is made up by the savings on gas. That is even longer than the five year average. Even the miracle of the hybrid car can’t save your budget like payday loans can save you from overdraft or late fees if you had a sudden expense.
Hybrid cars even though they don’t save you a lot in money they save you money so as long as you are still paying payments on your vehicle I think getting a hybrid is a good idea the technology is still a little lagging but who knows that might advance better since the gas crisis we were experiencing just a few months ago. So even if a hybrid only save you a little I think as long as your vehicle isn’t paid off I would buy one cause it does help the environment!!
It is NOT just the cost of fuel! And I am afraid your assumptions are completely off. 1) you assume average vehicle owner keeps their car 3-5 yrs. Hybrid owners keep their cars FOR LIFE. 89-92% loyal to the brand and 25% own two or more, which is MORE than double any other BRAND of car. No statistics out since hybrids haven’t been out long enough but I think it is safe to estimate 7-10 years on the hybrid.
Also, I think giving same size vehicle for interior room 30mpg is OVER-estimating what they get and 40 mpg is UNDER-estimating hybrid mileage. More realistic would be 25mpg vs 45 mpg, which would double your savings and half your years for return (now only 11 yrs).
Like I said, though, it isn’t JUST about gas. it is about helping the environment. The CO2 emissions of typical gas only car can be almost TRIPLE what a hybrid emits.
Also, by purchasing a hybrid (for the steeper price) you are making a statement to all auto makers. I WANT something better for me and for my environment. Get me better emissions and better gas mileage. It CAN be done but they are slow to make changes as long as people continue to buy 25 mpg cars. And until then, the hybrids will cost more. So if you can afford to take on the challenge, purchase a hybrid and have a voice (no matter how small it may seem…you can make a difference).
Well, Alyssa- on a couple of points, you got me. I’ll admit it. CO2 emissions are significantly reduced, but there are ways of reducing emissions in an all gas model, but it involves regular preventative maintenance, i.e. cleaning fuel injector/carburetor, engine, manifolds, etc, basically a lot of hassle.
Yes – I am assuming a 3-5 average length of ownership. I am also assuming an increase in fuel efficiency of only 10 mpg, but that is relatively close to the average. Two for instances – Toyota Camry and Honda Civic. The Camry (all gas) gets 21/31 mpg, the hybrid model gets 33/34. 12 mpg better in the city, 3 mpg on the highway. Cost Difference? About $7,000. Well, that’s still about $6300 after the one time tax break. And don’t get me started on the Highlander – LESS than 10 mpg difference, and a $9,000 increase in cost. As for the ubiquitous Honda Civic, 25/35 vs 40/45 for the Hybrid. 15 city/10 highway mpg, in which case, the value for that one holds up, but not with an $8,000 price difference, about $7300 after the one time tax discount. (Source: The Honda and Toyota websites.) Let’s say you do have the car for 7 years – you have to save $1,000 on fuel per year, which means you’d have to drive about twice the average (so about 28 – 30,000 yearly miles) at $4 a gallon to recoup.
I agree that CO2 emissions are reduced by driving one, and I also will stand up and proclaim that yes, we do need to reduce our carbon footprint as not only a nation, but also as a species – our survival does kind of depend upon it. However, that being said, my point was that hybrids are not cost effective, as evidenced by:
Sticker Price Being higher ($7,000 low end)
Gas mileage over average will be less than 10mpg
(Over average being that the combined city and highway mileage over the lifetime of the vehicle)
The fuel savings will not cover initial purchase cost unless the mileage you drive is substantially higher than the national average.
Therefore, a Hybrid vehicle, while being a bit greener for the environment, is not anywhere close to green for your wallet.
Quod Erad Demonstrandum.