Hybrid Cars Top Conventional Models in Long Term Value - Daily Auto Insider
The Daily Auto Insider
Tuesday, January 9, 2007
January 2007

Hybrid buyers are the winners over owners of regular models when you factor in costs of financing, fuel, insurance, state taxes and license fees, repairs, maintenance and depreciation, the Los Angeles Times reported, citing a new study by Los Angeles-based Intellichoice.com, which specializes in automotive cost-of-ownership data.

"Across the board, we found that all 22 hybrid vehicles have a better total cost of ownership over five years or 70,000 miles than the vehicles they directly compete against," said James Bell, Intellichoice.com's publisher.

For example, the study concluded that a Prius owner over five years will save $13,408 over a similar-size sedan that is not a hybrid.

The reasons for the difference, the study says, are: hybrids retain their value better than conventional vehicles, have moderate maintenance and repair costs and, of course, lower fuel costs.

Hybrids also benefit from federal tax credits, which this year can range from $250 to $1,950 but were as high as $3,150 in 2006.

The study based its gasoline prices on last year's average national gas price of $2.26 a gallon.