Do hybrids really save $ ?
Aug 24th, 2009 by gmoran
There is a great article by Tom Incantalupo, McClatchy/Tribune News titled “Report finds most hybrid cars pay off in 5 years”. He outlines the findings of Intellichoice.com regarding the actual dollar savings that might be expected from a hybrid model versus it’s gas only counterpart. General conclusions included the concept that smaller hybrids such as the Toyota Prius, Honda Civic and Ford Escape were better dollar savers over a 5 year period. Of course, the higher the gas prices – in the $4.00 range, the better the savings. Well, that’s pretty obvious. But this is the first actual study I’ve seen. Of note from Intellichoice was the fact that much of the hybrid upcharge is due to additional standard equipment other than the hybrid powertrain. The higher priced models show a greater price difference which means that a buyer is more likely to trade in the high end hybrid before any cost savings on fuel is realized. How many Lexus LS600H owners keep their car for 5-7 years? Now that gas seems to be hovering at steady levels, it appears that hybrid technology needs to be brought to the consumer cheaper for it to be a market success. Despite the Cash for Clunkers program, we’re still in an automotive depression.