Study reviews break-even point for hybrid vehicles
03-14-11, 02:31 PM
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Study reviews break-even point for hybrid vehicles
by Aaron Richardson
Buying a hybrid is a responsible environmental move but, given their premium over standard cars, they aren't always a money-saving purchase. A study by CarGurus showed that gas would have to top $7 a gallon to make most hybrids the economical choice.
Hybrids command, on average, a 17-percent markup over their standard-powertrain counterparts, which stunts their economy at the pump. The $7-a-gallon break even point is an average. For some cars, the break-even is point is even higher. For a Cadillac Escalade Hybrid to make you money, gas will need to climb to $15 a gallon.
On the lower side of the scale are the Toyota Camry Hybrid and Ford Escape Hybrid. The Toyota's break-even point came out to $4 a gallon, while the Ford bucked the trend, breaking even at $2.50 a gallon.
Buying a hybrid is a responsible environmental move but, given their premium over standard cars, they aren't always a money-saving purchase. A study by CarGurus showed that gas would have to top $7 a gallon to make most hybrids the economical choice.
Hybrids command, on average, a 17-percent markup over their standard-powertrain counterparts, which stunts their economy at the pump. The $7-a-gallon break even point is an average. For some cars, the break-even is point is even higher. For a Cadillac Escalade Hybrid to make you money, gas will need to climb to $15 a gallon.
On the lower side of the scale are the Toyota Camry Hybrid and Ford Escape Hybrid. The Toyota's break-even point came out to $4 a gallon, while the Ford bucked the trend, breaking even at $2.50 a gallon.
This comes to no surprise to most of us. But $7/gal I think is a bigger gap than we may have thought. And how about that Escalade premium?!
Also, this study seems to assume immediate savings, not long term savings or savings realized with high mileage driving.
So it may still depend on you're individual driving practices and how long you own your vehicle. Also, using a Prius as a cab in NYC, for example, will most definitely yield immediate savings because it provides triple the city MPG of a Crown Vic or similar vehicle for the same price.
03-14-11, 02:41 PM
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I think this "study" is worthless without also mentioning the following stats:
1) Price difference between the gasoline and hybrid version
2) MPG difference between the gasoline and hybrid version
3) Miles driven over the lifetime of the car
1) Price difference between the gasoline and hybrid version
2) MPG difference between the gasoline and hybrid version
3) Miles driven over the lifetime of the car
03-14-11, 03:12 PM
#3
Did this study use a Prius or an LS600hL?
The "study" by CarGurus (found via Google) used a Cadillac Escalade Hybrid as part of their research.
In other words: not all hybrids (just like diesels and electric cars) are all the same. This study simply lumped all of them up in one.
The "study" by CarGurus (found via Google) used a Cadillac Escalade Hybrid as part of their research.
In other words: not all hybrids (just like diesels and electric cars) are all the same. This study simply lumped all of them up in one.
Last edited by PhilipMSPT; 03-14-11 at 03:15 PM.
03-14-11, 03:51 PM
#5
indeed, and plus do they count resale price?
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