Pros and Cons of Buying a Hybrid:
Should You Buy A Hybrid Car?
To buy or not to buy, that is the question...
Up until the recent spikes in gas prices, the answer was pretty cut 'n dry: You wouldn't really make up the additional cost of buying a hybrid in fuel savings.
So your decision to buy a hybrid car or not was based solely on your concern for the planet's health and the health of the living organisms on it. You were a "tree hugger."
Or maybe you simply had an appreciation of the unique technology and driving characteristics of hybrids; you were a "gadget freak." (like myself ;)
But now, there's some real cash to be saved...that is, IF you drive a certain minimum number of miles per year for a certain number of years.
So the question now is, "How many years at how many miles per year is the minimum I should drive to make it worth paying $$___ extra for a car?" Well, the answer is not so cut 'n dry as doing the math:
Check out these other important financial considerations:
Some Other Financial Reasons to Buy a Hybrid Car
1. Tax credits for your new hybrid can be as much as $3400 for '06, thus totally offsetting the extra purchase cost, which averages out to $3000 for most models. (Check out the "Tax Credit for 2006 Hybrid Car Owners" for more on this.)
2. Insurers typically offer a 5% reduction in premiums for hybrid owners.
3. Even though some hybrids don't offer huge increases in mpg over small, gas-only cars, the range of some hybrids exceeds 600 miles to the tank of gas. So you are saving fuel stops, not to mention time. This saves you money.
4. Repair costs of the new hybrids are turning out to be lower because of the long warranties---80,000 miles on the low end up to 150,000 miles on the upper end.
Most of the hybrid-specific components are out-lasting the gasoline
engine parts.
So you see, if you considered only the raw gasoline cost savings, you're missing the big picture. Besides, if you already drive a fuel efficient car like a gas-only Honda Civic, it may turn out that you'd need to drive a gazillion miles in a new hybrid for it to pay for its added purchase price in fuel savings.
Related to this question: If you need to replace your old car anyway, what type of car do you need? Do you need an SUV, are you a 'soccer Mom' or do you need a van? Because there are some SUV hybrids now. Which requires another set of extra cost numbers and gas mileage numbers, etc.
So instead of crunching numbers, let's take some real-world examples from edmunds.com, consumer reports, and Road and Track---articles written in 2006.
To save you time and keep you from being bored (even more bored than you may be now!) I've summarized their articles on hybrid car costs vs. their gasoline-only counterparts...
On average, you'd need to drive a hybrid 100,000 miles to recoup the extra cost for the hybrid based solely on gas savings. (The actual figures ranged from 75,000 miles to 120,000 miles.)
But, as we now know, these figures are only part of the picture. The new hybrids are getting cheaper, too:
The new Toyota Prius -- the epitome of hybrid technology -- sells for $21,725. And that's MSRP. (See "The Toyota Prius Hybrid.") So the vehicle can be had for a good deal less.
The Honda Civic hybrid and the Toyota Prius were the only hybrids tested by Consumer Reports in their 2005-2006 survey that actually paid their owners back in gas money saved. But it's the other areas that adds up to real savings. And don't forget the owner satisfaction survey: 96% of all hybrid owners--regardless of make & model--said they would enthusiastically buy another!!
But let's look a little more into detail of just what you can expect from Uncle Sam when you make the decision to "go hybrid." ....
Next page: Federal Tax Credit for Hybrid Cars
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