Hybrid technology is certainly not new but if you have been in the market for a new car recently you probably have considered buying one. If you have already bought a hybrid, thank you for contributing to decreasing the global dependency on oil.
What's in it for you though? Does buying a hybrid car save you any money? Is there a compelling argument to going for the hybrid car compared to the non-hybrid alternative.
If you think that "Hey, I'm getting more MPG's so I am saving money..." hold your horses because you might be missing on some important details. Hybrid technology is not brand new but it still does come at a cost. Not only higher sticker price for the battery technology itself. Also because of the environmental cost of manufacturing the additional equipment necessary to run hybrid cars.
The latter is important because your "green" car might not be as green as you think. We have enough of a problem disposing of batteries already in production. Imagine after the production of millions of hybrid cars.
Since the main reason most of us buy hybrid cars is fuel economy, let's look at some examples to compare hybrids to non-hybrids:
Example 1:
A Ford Fusion has a base price of $19,850 and a Ford Fusion Hybrid will cost you $29,395. A little bit less than $10,000 is the difference between the base prices of the two models. The difference in the mileage: 23 and 41 MPG respectively in the city. So maybe double the gas mileage.
Example 2:
A Honda Civic's base price today is $15,805 and a Honda Civic Hybrid will set you back $24,050. Again a little less than $10,000. The difference in the gas mileage is 16 MPG's since the hybrid version does 44 MPG in the city and the standard one 28 MPG.
Example 3:
A Toyota Corolla costs $15,900 and a Toyota Prius $23,520 as a base price. The difference in gas mileage between the two cars is 23 MPG in the city, with the Prius at 51 MPG and the Corolla at 28 MPG. So, you are getting a little less than double the MPG from the Prius. Their sticker price difference at the same time is around $7,000.
Example 4:
Looking at a more expensive, luxury hybrid, the Lexus GS goes for $58,950 and the standard, non-hybrid model around $46,900. A price difference of $12,000!!! Their difference in gas mileage? Not as much as you would expect...a mere 3 MPG more for the hybrid version!
So how does hybrid technology compare to standard cars today?
All these examples demonstrate clearly that the upfront cost of a hybrid is not to be taken lightly. If you are buying a car to save on gas and hopefully save some money in the long-term, you want your investment to pay off.
But even the simplest calculation based on the previous numbers shows that with such a significant difference in the sticker price it would take you at least 5-10 years to get the extra money you paid at the first place. The exact number of years you would need to drive depends on your annual mileage but even if you drive 15,000 miles per year it is unlikely it will be less than 5-7 years. Look at a similar article with some brief calculations here.
Usually when we invest money we all expect some return right? I am not naive to believe that buying a car is a good investment at the first place but paying the extra cost for the hybrid technology should be. It is the way human psychology works, that we tend to forget the upfront cost of a car especially when we are eager to get that new car smell. We only focus on the monthly "savings" from better gas mileage.
The way it looks though, you are expected to pay $10,000 upfront with the promise that if you drive a lot you will probably get your money back in 5-10 years. How does that make any financial sense whatsoever?
I am also sure that some will argue that a Toyota Prius is better equipped than a base price Toyota Corolla. And you will be right but this is not why you buy the Prius is it? You buy it for fuel economy and you cannot get it for less than $23,520. On top of that, the material quality and feel of the interior is really not much different.
Concluding, hybrid technology is certainly a step in the right direction in terms of developing more fuel-efficient green cars. It just seems a little early to pay back any real benefits for the individual driver like you and me.
John Stamm is an advocate of lifelong learning, positive thinking and the immense power of the human brain.
Find more of his articles on technology, cars, education and self-help at http://www.brainsuperiority.com
By John Stamm
What's in it for you though? Does buying a hybrid car save you any money? Is there a compelling argument to going for the hybrid car compared to the non-hybrid alternative.
If you think that "Hey, I'm getting more MPG's so I am saving money..." hold your horses because you might be missing on some important details. Hybrid technology is not brand new but it still does come at a cost. Not only higher sticker price for the battery technology itself. Also because of the environmental cost of manufacturing the additional equipment necessary to run hybrid cars.
The latter is important because your "green" car might not be as green as you think. We have enough of a problem disposing of batteries already in production. Imagine after the production of millions of hybrid cars.
Since the main reason most of us buy hybrid cars is fuel economy, let's look at some examples to compare hybrids to non-hybrids:
Example 1:
A Ford Fusion has a base price of $19,850 and a Ford Fusion Hybrid will cost you $29,395. A little bit less than $10,000 is the difference between the base prices of the two models. The difference in the mileage: 23 and 41 MPG respectively in the city. So maybe double the gas mileage.
Example 2:
A Honda Civic's base price today is $15,805 and a Honda Civic Hybrid will set you back $24,050. Again a little less than $10,000. The difference in the gas mileage is 16 MPG's since the hybrid version does 44 MPG in the city and the standard one 28 MPG.
Example 3:
A Toyota Corolla costs $15,900 and a Toyota Prius $23,520 as a base price. The difference in gas mileage between the two cars is 23 MPG in the city, with the Prius at 51 MPG and the Corolla at 28 MPG. So, you are getting a little less than double the MPG from the Prius. Their sticker price difference at the same time is around $7,000.
Example 4:
Looking at a more expensive, luxury hybrid, the Lexus GS goes for $58,950 and the standard, non-hybrid model around $46,900. A price difference of $12,000!!! Their difference in gas mileage? Not as much as you would expect...a mere 3 MPG more for the hybrid version!
So how does hybrid technology compare to standard cars today?
All these examples demonstrate clearly that the upfront cost of a hybrid is not to be taken lightly. If you are buying a car to save on gas and hopefully save some money in the long-term, you want your investment to pay off.
But even the simplest calculation based on the previous numbers shows that with such a significant difference in the sticker price it would take you at least 5-10 years to get the extra money you paid at the first place. The exact number of years you would need to drive depends on your annual mileage but even if you drive 15,000 miles per year it is unlikely it will be less than 5-7 years. Look at a similar article with some brief calculations here.
Usually when we invest money we all expect some return right? I am not naive to believe that buying a car is a good investment at the first place but paying the extra cost for the hybrid technology should be. It is the way human psychology works, that we tend to forget the upfront cost of a car especially when we are eager to get that new car smell. We only focus on the monthly "savings" from better gas mileage.
The way it looks though, you are expected to pay $10,000 upfront with the promise that if you drive a lot you will probably get your money back in 5-10 years. How does that make any financial sense whatsoever?
I am also sure that some will argue that a Toyota Prius is better equipped than a base price Toyota Corolla. And you will be right but this is not why you buy the Prius is it? You buy it for fuel economy and you cannot get it for less than $23,520. On top of that, the material quality and feel of the interior is really not much different.
Concluding, hybrid technology is certainly a step in the right direction in terms of developing more fuel-efficient green cars. It just seems a little early to pay back any real benefits for the individual driver like you and me.
John Stamm is an advocate of lifelong learning, positive thinking and the immense power of the human brain.
Find more of his articles on technology, cars, education and self-help at http://www.brainsuperiority.com
By John Stamm
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