Green (MPG) vs. Green ($$$): How much green being green will cost you
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Green (MPG) vs. Green ($$$): How much green being green will cost you
ANDREW LUU
Posted Date: 9/22/05
With gas prices hovering near $3 per gallon, some drivers rushed toward hybrid vehicles in hopes of saving their rapidly thinning wallets. But many don’t realize that while hybrids may save money at the pump, they don’t necessarily save money overall.
Put another way, owning a hybrid is like owning a low-flush toilet: Each is environmentally sound, but not without sacrifice.
For hybrid vehicles, that means paying more for fuel-saving technology that may not pay off at the pump any time soon. If saving money is your main objective for considering a hybrid car, your ambition is better served by owning a non-hybrid with good fuel economy, something like a Scion xA, which gets 32 mpg city/38 mpg highway.
According to EPA annual fuel cost estimates, the shortest period in which you will recoup the added sticker price of a hybrid is about nine years for a Ford Escape Hybrid vs. an Escape XLT V6.
If you include the $2,000 tax credit—available until Dec. 31 on all newly purchased hybrids—that duration can drop to as low as two years in the Honda Civic Hybrid. The exact figures for new tax incentives authorized under the 2005 Energy Bill can be as high as $3,400, depending on the type of vehicle and its fuel economy rating.
Obviously the higher the gas price and the more you drive, the faster the financial gap closes. All these calculations are based on car sales price and gasoline use, but do not include the eventual (and high) cost of replacing a hybrid’s battery pack.
Regardless of how you crunch the numbers, a hybrid’s real return on your investment comes in the form of self-gratification: in knowing that with every mile you drive and every trip to the gas station, you’re doing your part to preserve the place we all call home. For many drivers, that’s a few grand.
![](http://tinypic.com/dx1k7c.jpg)
http://www.autoweek.com/news.cms?newsId=103228
ANDREW LUU
Posted Date: 9/22/05
With gas prices hovering near $3 per gallon, some drivers rushed toward hybrid vehicles in hopes of saving their rapidly thinning wallets. But many don’t realize that while hybrids may save money at the pump, they don’t necessarily save money overall.
Put another way, owning a hybrid is like owning a low-flush toilet: Each is environmentally sound, but not without sacrifice.
For hybrid vehicles, that means paying more for fuel-saving technology that may not pay off at the pump any time soon. If saving money is your main objective for considering a hybrid car, your ambition is better served by owning a non-hybrid with good fuel economy, something like a Scion xA, which gets 32 mpg city/38 mpg highway.
According to EPA annual fuel cost estimates, the shortest period in which you will recoup the added sticker price of a hybrid is about nine years for a Ford Escape Hybrid vs. an Escape XLT V6.
If you include the $2,000 tax credit—available until Dec. 31 on all newly purchased hybrids—that duration can drop to as low as two years in the Honda Civic Hybrid. The exact figures for new tax incentives authorized under the 2005 Energy Bill can be as high as $3,400, depending on the type of vehicle and its fuel economy rating.
Obviously the higher the gas price and the more you drive, the faster the financial gap closes. All these calculations are based on car sales price and gasoline use, but do not include the eventual (and high) cost of replacing a hybrid’s battery pack.
Regardless of how you crunch the numbers, a hybrid’s real return on your investment comes in the form of self-gratification: in knowing that with every mile you drive and every trip to the gas station, you’re doing your part to preserve the place we all call home. For many drivers, that’s a few grand.
![](http://tinypic.com/dx1k7c.jpg)
http://www.autoweek.com/news.cms?newsId=103228
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When the Hybrids become more mainstream & are in line with the rest of the model lines pricewise, then I will seriously consider purchasing one. Does not make much economic sense in the short term (say first 5 years of ownership) to buy one as things stand now.
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They obviously did not, which totally missed the point ,at least for the RX400h & the Highlander(i'm not too familiar with the other hybrids). The performance gain alone over the RX330 already fully justified the $3-4K premium, with the better gas mileage being a bonus.
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Originally Posted by AmethySC
They obviously did not, which totally missed the point ,at least for the RX400h & the Highlander(i'm not too familiar with the other hybrids). The performance gain alone over the RX330 already fully justified the $3-4K premium, with the better gas mileage being a bonus.
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Originally Posted by Lexusfreak
When the Hybrids become more mainstream & are in line with the rest of the model lines pricewise, then I will seriously consider purchasing one.
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Originally Posted by bitkahuna
A 3-4K premium on a 40K vehicle is one thing (10%) but on a 20K vehicle, a 20% premium is harder to justify. And the 'performance' of a Civic hybrid is anemic. It works better on the RX400h for sure.
the civic doesn't get better performance
don't know if the escape gets better performance
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in the long run, these hybrids will probably cost more to fix too... think about it.. they run on batteries... you gotta change them sometime... how much is that going to cost... also, not only do you have to worry about the combustion engine malfunctioning... but the electrical engines too. many more components to go wrong... and there is a law that says if something can go wrong it will go wrong.
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Something that I consistently see being left out from these magazine articles is the altrusim factor. Some people that are in the financial position to take a hit (10% on a $40k vehicle) may do so in an effort to drive cars that are better for the environment. Perhaps making the money back isn't always first on their minds. I also know that many people are so in love with techno gadgets and so on that owning a hybrid would be quite cool just to have it and be part of the experience.
Also, the prius is $22,xxx which isn't a fortune by many stretches of the imagination. Maybe I'm way off base but I never see these points argued by magazines, news, or any other form of media.
James
Also, the prius is $22,xxx which isn't a fortune by many stretches of the imagination. Maybe I'm way off base but I never see these points argued by magazines, news, or any other form of media.
James
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I'm about ready to switch to a hybrid. Literally don't care if it cost me a $20,000 premium either. Why? Simple - I would rather pay more and stick it to the oil companies. I'm tired of the price gouging, and even though I am a conservative, I do care about the environment. It's time to start conserving, even if it's only to a small extent.
It's not always about the money...
drink300
It's not always about the money...
drink300
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Originally Posted by babyGS3
in the long run, these hybrids will probably cost more to fix too... think about it.. they run on batteries... you gotta change them sometime... how much is that going to cost... also, not only do you have to worry about the combustion engine malfunctioning... but the electrical engines too. many more components to go wrong... and there is a law that says if something can go wrong it will go wrong.
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Originally Posted by babyGS3
in the long run, these hybrids will probably cost more to fix too... think about it.. they run on batteries... you gotta change them sometime... how much is that going to cost... also, not only do you have to worry about the combustion engine malfunctioning... but the electrical engines too. many more components to go wrong... and there is a law that says if something can go wrong it will go wrong.
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Drink you brought up an excellent point I forgot. I would rather give my money to the green pioneers like Toyota or Honda so that I can support the research to the final goal of zero emission cars than just hand out more of my money to oil companies while they fatten their pockets and do little or nothing to significantly help with consumption or pollution.
James
James
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As nice as the theory behind hybrids are, there are still many considerations to be made when choosing the hybrid version versus a regular gas version:
1) Hybrid Price: $4k premium is relatively high, but hopefully will decrease in the next 5 years.
2) Gas Price: If gas goes up to about $4 a gallon for premium, you would still need to drive the car 15k miles a year for 5-6 years to break even with cost savings from less gas consumption.
3) Battery life: a hybrid battery is expected to last about 100k miles. If you drive 15k miles a year, you would need to change the battery in about 6-7 years, and will cost approx. another 2k to replace.
4) Maintenance: "qualified" techs that can fix any problem with hybrid engines are found at the dealerships, which can be significantly more expensive than neighborhood auto mechanics that may not know how a hybrid system works.
5) "Luxury Premium": hybrid versions of most cars have most upgrades standard. Consider the RX330 -- $38k for simple to $46 for loaded. The RX400h is fully loaded at $50. They do not offer a "simple" hybrid version that would be around $42k without the high-end options.
6) Dealer mark-up: hybrids are the fad, and most dealers will also add an extra $2k to the price.
My suggestion: don't buy a hybrid, but rather lease it. You'll pay for the depreciation, but not the maintenance costs in the long run. You should drive around 20k miles annually to really get your money's worth. If you drive less than that, get a gas engine.
If you think that "being green" is important, it's your choice/money.
If you like Toyota/Lexus compared to other cars when considering a hybrid, that's fine. But Toyota/Lexus can offer other non-hybrid cars at better value.
Good luck with your car shopping!
1) Hybrid Price: $4k premium is relatively high, but hopefully will decrease in the next 5 years.
2) Gas Price: If gas goes up to about $4 a gallon for premium, you would still need to drive the car 15k miles a year for 5-6 years to break even with cost savings from less gas consumption.
3) Battery life: a hybrid battery is expected to last about 100k miles. If you drive 15k miles a year, you would need to change the battery in about 6-7 years, and will cost approx. another 2k to replace.
4) Maintenance: "qualified" techs that can fix any problem with hybrid engines are found at the dealerships, which can be significantly more expensive than neighborhood auto mechanics that may not know how a hybrid system works.
5) "Luxury Premium": hybrid versions of most cars have most upgrades standard. Consider the RX330 -- $38k for simple to $46 for loaded. The RX400h is fully loaded at $50. They do not offer a "simple" hybrid version that would be around $42k without the high-end options.
6) Dealer mark-up: hybrids are the fad, and most dealers will also add an extra $2k to the price.
My suggestion: don't buy a hybrid, but rather lease it. You'll pay for the depreciation, but not the maintenance costs in the long run. You should drive around 20k miles annually to really get your money's worth. If you drive less than that, get a gas engine.
If you think that "being green" is important, it's your choice/money.
If you like Toyota/Lexus compared to other cars when considering a hybrid, that's fine. But Toyota/Lexus can offer other non-hybrid cars at better value.
Good luck with your car shopping!