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Do Hybrids Save you Cash

Date Published: 22nd September 2009
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Author: Ross Garnaut RSS Views: N/A PRINT ASK ABOUT THIS ARTICLE
Hybrid cars are the wave of the future. With fuel prices at an all time high, most drivers have at least considered purchasing a hybrid vehicle. But are these half-gas/half-electric autos really worth it? Does the savings on gas outweigh the higher sticker price? Will hybrids continue to develop? Is there other technology out there that can challenge their dominance of the future auto industry?

Yes, it seems that when it comes to hybrids there are often more questions than answers.

The most fuel-efficient hybrids are in the small-car market. The Toyota Prius is the biggest seller in the compact hybrid sector and the most famous hybrid of all. The Prius averages about 45 miles-per-gallon in the city and 48 on the highway. Its sticker price exceeds $21,000. Its closest hybrid competition, the Honda Civic Hybrid, gets between 40 and 45 miles-per-gallon and has a similar price tag.


These ratings put the hybrids about 5-10 miles per gallon above the most fuel-efficient all-gas small cars. The Honda Civic, Toyota Yaris, Nissan Versa, and Honda Fit are some of the brands that fall into that category. All these cars come with the option of manual transmission, a feature that further enhances fuel economy. The average cost for an all-gas auto is $5,000 to $10,000 less than their hybrid kin. A Toyota Yaris, for example, generally retails for around $13,000. That is $8,000 cheaper than the Prius.

It would take years to make up the difference in gas savings.

So simply looking at fuel efficiency and stick price, it seems that hybrids are not worth the extra money it costs to buy one. Some people have thrown around phrases like “spending a lot (on a hybrid) to save a little (on gas).” Keep in mind, also, that companies are continuing to work on more fuel-efficient gas engines. Add to that the fact that some diesel-powered cars already beat the Prius in terms of miles-per-gallon (see below).


Hybrid technology is still in its infancy. Plug-in hybrids are on the horizon. Even they will have hidden costs. Plugging in such a car (the Chevy Volt will be the first, followed by a plug-in version of the Prius) will lower the money you spend on gas, but will raise the electricity bill. We’ll have to wait and see just how much juice it will take to charge up the Volt or Prius plug-in. Also, the Volt will reportedly have a price tag of nearly $40,000.

So, at least at present and for the near future, it seems that the cheapest approach to car buying and operation is to opt for a compact with a gas engine and a manual transmission. Not only is the price tag much, much lower than a hybrid, the differences in fuel economy are negligible.


And what about the environment? Some small cars, like the Ford Focus, qualified as Partial Zero-Emission Vehicles. That puts them in the same category as most hybrids. Though a Prius might be a status symbol for green-minded drivers, a Focus or Yaris is equally green when it comes to the amount of pollution coming from the tailpipe. And both the Ford and Toyota compacts cost at least $7,000 less than the Prius. That seven grand could be put towards buying solar panels or installing a more energy efficient furnace and air conditioner. This proves that you don’t have to plop down $20,000 for a hybrid to be an environmentally friendly driver.

Another thing to consider is the rate at which new technology is developing. One only has to flip through the pages of the latest issue of an auto magazine to see that development is occurring everywhere. Nissan is just one of the companies trying to make the first fully-battery-powered car available to consumers. Such a car would probably have a high price tag at first, but would eventually become cheaper once other car companies began to offer battery-powered models. With this in mind, it might be a good idea to put your hybrid-buying ambitions on hold. Better, more environmentally friendly options are on the way over the next few years.

When talking about new technology, it is also important to factor maintenance costs into the equation. A hybrid has two power sources and both need to be serviced and maintained. Though people have found the Prius and Civic hybrid to be reasonably reliable, repair and maintenance costs are higher than those of the equally reliable gas-engine versions. So again, the gas engine compact comes out on top when its cost-of-operation is compared to its hybrid kin.

There are other alternatives out there besides hybrids and sub-compacts. Even though diesel is currently more expensive than regular gas, it has its advantages. The Volkswagen Jetta illustrates this perfectly. The 2009 TDi version of the Jetta will get nearly 50 miles-per-gallon (reportedly). Even if it doesn’t quite live up to that, it will still be an impressive car. New emissions controls will make the car cleaner than previous diesels, and even cleaner than many gas-engine cars. And, though diesel burns slower than regular gas, it does not compromise performance. Test drives of the TDi have proven it to be a car with some oomph from under the hood. These new clean diesel cars are no less expensive that the Prius and its ilk, but they show that there are more options out there than the ones that steal all the headlines. With the rapid development of biodiesel fuels, cars like the Jetta TDi could turn out to be both cheaper to fuel and greener than hybrids.

Diesel powered versions of the VW Rabbit and Ford Focus are already on the road in Europe (where gas prices are even higher than they are in the US). Once these reach the US, they will have a sticker price that is significantly less that the Jetta TDi.

In conclusion, hybrid cars do get better gas mileage than most (but not all) gas and diesel powered vehicles. However, from a money standpoint, the difference is not enough to warrant spending $7,000-$10,000 more for a compact hybrid like the Prius when gas-engine compacts are also quite fuel efficient and cheaper to repair and maintain.

The technology will change rapidly, making hybrids more fuel efficient and cheaper to repair. And there are other exciting developments that like clean diesel, that will also lower fueling costs. It will just take time for the prices of these new cars to come down.

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Tags: hybrid technology, hybrid vehicle, fuel efficiency, fuel economy, miles per gallon, sticker price, honda civic, hybrid cars, prius, small cars, gas engines, toyota prius, toyota yaris, honda fit, honda civic hybrid
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