By Todd Kaho (http://www.greencar.com/articles/will-hybrid-car-really-pay-off.php)
It is true that hybrid vehicles cost more than usual. This prompted many to wonder whether the extra cost for these cars deserve a high efficiency, and in fact if the difference can be offset from time to time by the cash saved from buying fuel. While many generalizations that have been conducted in recent years, additional cost recovery concept hybrid that involves many variables and can only be answered on a case by case basis. Green Car research shows that a realistic answer is not so simple and boil it into a simple chart misleading … so we will not do it. Instead, we will do this the right way and help you come up with a valid return factor you might consider a hybrid.
You need to know that chewing numbers involve some element of a moving target. For example, higher gasoline prices work to shorten the number of miles required for a refund. Changing government incentives means that the calculations made today may be different from the reality of the calculation was made several months on the road. And do not forget that the retail price of hybrids also appears to be in play as a dealer tactic to a hybrid of several thousand dollars a suggested retail price because demand is high.
However, the basic equation for determining the breakeven point of a hybrid is easy. This begins by identifying the combination city / highway mpg hybrid numbers and that of the conventional nearest peer. Mpg, these figures can be found online at www.fueleconomy.gov. Once armed with the numbers you can find the operating cost of each vehicle per mile based on current fuel prices.
To do so, simply divide the price of fuel (eg $ 4.00 per gallon) by a combined mpg of a vehicle. As an illustration, a Honda Civic Hybrid will pencil out as follows, assuming gas costs above: $ 4.00 ÷ 42 mpg = $ 0.095 (9 ½ cents) per mile operating costs. If the Civic EX is used as a comparison of conventional, these pencils will be out at $ 4.00 ÷ 29 mpg = $ 0.14 (14 cents) per mile. Thus, the hybrid variant will cost $ 0.045 (4 ½ cents) less for each mile driven. Placed in these terms, it was enlightening that even at 42 mpg, you burn money on gasoline worth almost every 10 miles you drive. Ouch!!
Furthermore, manufacturers specify a suggested retail price (MSRP) for the models you’re comparing. Honda Civic Hybrid MSRP is $ 22,600 and the standard Civic EX is $ 18,710, with a differential of $ 3,890. To find the distance traveled is projected to break-even point – where fuel efficiency improvements offset the cost of the hybrid premium – the price difference between hybrid and conventional models models powered identically divided by the savings per mile. In the case of Honda Civic, this figure came out like this: $ 3,890 (cost difference) ÷ $ 0.045 (4 ½ cents per mile savings) = 86 444 miles. So, at least in theory, the additional cost of the Honda Civic hybrid in this scenario will be calculated at more than 86,000 miles of driving if gas prices $ 4.00 per gallon.
Of course, there are federal incentives for hybrid models a lot and this can make a big difference in the payback calculation. Civic Hybrid currently qualifies for a federal tax credit of $ 1,050, which converts the differential cost comparison between the model and results in a factor payback mileage 63 111 miles if purchased now. However, the tax credit be deleted according to certain criteria and disappeared when the car is sold 60 000 hybrid. For example, Honda’s tax credit is reduced to $ 525 on July 1, 2008 and will be lost entirely on the date of January 1, 2009. Substantial tax credit $ 3,150 are available for the Toyota Prius as a federal incentive program began now really go for this model, and in fact all the Toyota / Lexus hybrids, because this successful sales automaker’s hybrids. information currently available to credit for specific hybrid models can be found in http://www.fueleconomy.gov/Feg/tax_hybrid.shtml.
Basic calculations can be used to determine the theoretical payback for each hybrid model. If the basics are what you are looking for then you’ve done here. But there are more “wild card” factors to consider, so if you tend to find other ways that may affect the weight in, then read on.
BEYOND BASICS
If all this sounds simple, I assure you it is not. Looking for a direct hybrid / gasoline ratio of the model can be tricky because many of the features that come standard on the hybrid model can not be offered on gasoline-powered counterparts them. Auto manufacturers often sweeten the deal on hybrids with additional content to soften the higher price of hybrids. Additional features to the manufacturers cost much less than the retail value added they bring to consumers, so that the content serves to take some of the sting from the additional money paid handsomely for hybrid technology.
The challenge in identifying a direct comparison is described by the Toyota Camry hybrid. When you add in a choice of engines and trim levels, a list of 11 Toyota Camry of different styles and do not have the right mix of options and components as the Toyota Camry Hybrid. Also, while a single example, should also be noted that the Toyota Prius hybrid has no direct basis of comparison since the body styles are offered only as a hybrid.
Still other factors cloud the problem. Driving habits present a significant wild card in the payback equation. Fuel economy can easily vary by 5 mpg or more on higher vehicle fuel economy with the differences in driving style. Drive with fuel economy in mind and you can also cut miles to achieve breakeven in half.
Other incentives that break-even effect is not so obvious, like the ability to solo drivers to use high occupancy vehicle (carpool) lane in some states. While these incentives can save you hundreds of hours of time behind the wheel in the cities is very solid for a year – a real life quality advantages – also offers real financial benefits from cutting commuting time saving fuels, which also save cash. The case can certainly be made for factoring the dollar value of fuel stored in the payback equation. But again, that’s a wild card that must be calculated on a case by case basis. Plus, they expect it should be remembered that the benefits of HOV can go for the purchase of new hybrids after the quota is reached, as is happening now in California.
One of the main considerations when shopping for a new hybrid is the length of time you plan to store vehicles. If you are a short-term buyers, the math to break even may seem impossible to achieve. Big variable here is the resale or residual value when you sell the car. A hybrid is likely to retain many of the original premium you paid because of high demand, especially if you sell or trade in after only a few years. So, that $ 3000 or $ 4000 premium you pay for hybrids still could add $ 2,000 or more to the value of used cars, means you only need to save $ 1,000 or so in the gas – or consume 250 gallons of $ 4 per gallon – to the point breakeven.
Finally, there is the subject of the cost of replacement batteries that could (or should) be factored into the equation. While hybrids are fairly new so the actual cost of replacement batteries is generally known, projected that the new battery pack is likely to fall within the range of $ 2000 or so when the aging hybrids get to the point where replacement is necessary.
When is a hybrid pay for itself? We like to think the day of the drive you are parking. Being the early adopter of technology a positive environment, reduce dependence on petroleum, and creates less pollution have their own awards. Large savings realized in each time a new hybrid pumps filled also provide real financial benefits and immediate. With all of this and rising gas prices are already increasing the resale value of an efficient small cars – a trend that would be beneficial as well as the values of hybrids – the answer to those who questioned whether the hybrids will pay for it seems increasingly clear every day.
If you are enjoy read this article, you may be also interested in reading: Ferrari Hybrid, 2010 Toyota Prius, BMW X6, Audi Q7, Prius Minivan, The Interior of Prius, Honda CR-Z Hybrid, Pros and Cons of Hybrid Cars, Infinity M35, The Most Popular Hybrid Cars, Lithium Ion Battery, and The History of Toyota Prius.
