The auto industry is all aflutter about hybrids, and many auto manufacturers can't build them fast enough to satisfy demand. Would I want one? Sure, maybe, someday. But for now, at least, the math doesn't make a compelling case. Let's take a typical popular car and its hybrid cousin:
2007 Honda Accord LX V6
MSRP: $25,200
EPA MPG: 20 city / 29 highway
2007 Honda Accord hybrid sedan (3.0L, V6)
MSRP: $31,090
EPA MPG: 28 city / 35 highway
Aside from the power supply, the cars have similar styling, features and performance. But for me it's all about the math. You pay a $5,890 premium for the hybrid, which is partially offset by incentives; a new Accord hybrid gets you a $1,300 federal tax credit, and certain states, localities and even employers will offer additional enticements to go green, such as cash back or the ability to use HOV lanes even when driving alone. And, of course, you'll spend less on gas. But how much less?
Let's say you drive the two cars above for five years at 15,000 miles each in a mix of city and highway -- according to the EPA (whose estimates are debatable, but that's another post) around 25mpg in the gasoline Accord, and around 32mpg in the hybrid. Let's say gas costs $3 a gallon. At the end, you'll have driven 75,000 miles; in the gasoline engine you'll use 3,000 gallons of gas for a total of $9,000; in the hybrid you'll use 2,344 gallons for $7,031, a difference of $1,969.
Adding it up, you save $1,300 from Uncle Sam, another two grand in gas, and maybe a few hundred from your state, county or employer. But you spent nearly $6,000 more to buy the hybrid in the first place. If you're financing or leasing the car, you're paying interest on the extra amount over the life of the deal. By my count, the gasoline version still wins by around $2,000.
Demand for hybrids seems largely stimulated by the media and the basic human desire to impress our neighbors. But I suspect that more of us would line up for hybrids if the dollars made it a fair trade.
Find out more about hybrids at AOL Autos.
Reader Comments (Page 1 of 1)
1. The nice thing about working with It-Hot-Marc is I can be the first to comment when he does actually post! Great info, thanks for doing all the math -- $2000 is quite a savings. You didn't factor in the cost of the environmental impact though. Further, if we do eventually raise the standards for our emissions to the levels they are trying to achieve in California (and already have achieved in many other countries), would it be more cost effective to purchase a hybrid now at the current prices, or run the risk of being forced to buy a new car that meets those higher standards (and is likely then even more expensive) later?
Posted at 3:18PM on Aug 6th 2007 by Its-Hot-Summer
2. Thanks for the comparison. It's easy to get seduced by the "green" aspects of the hybrids but, you're right, the numbers just don't make sense.
What's the trend on these? Will the prices on them be coming down? Will improvements in gas efficiency make the hybrids more attractive? Or do you think a totally new technology will come along and make them obsolete?
Posted at 3:28PM on Aug 6th 2007 by T-Mo
3. I say we forgo the dependency on oil and settle for hydrogen fuel cells. True, the majority of the hydrogen we extract goes through a process that adds more greenhouse gases, but there are ways around this. Commit some renewable energy resources to electrolysis and viola! Clean, renewable and free energy.
Posted at 3:59PM on Aug 7th 2007 by Don
4. While I certainly think it's debatable on if we save money or not by purchasing the hybrid, saving 700 gallons of gas is impressive. If every person driving saved 700 gallons of gas in five years that would be amazing. WikiAnswers says there are somewhere between 145-250 million registered vehicles on the road today. Let's say that 145 million were able to save 700 gallons of gas each - that's over a BILLION gallons saved! (If my teeny calculator is doing the math right.)
Thinking about the greater good and not just the immediate investment in the car purchase - the numbers are very impressive and could have an incredible impact on our environment.
Posted at 10:15AM on Aug 16th 2007 by Missy