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Hybrids cost more to buy, operate [Archive] - Auto Industry Forum

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mchastek
07-06-2005, 04:55 PM
http://www.freep.com/money/business...1e_20050611.htm (http://www.freep.com/money/business...1e_20050611.htm)

LEADING INDICATORS: Hybrids cost more to buy, operate

Autos
No doubt about it. Hybrid cars and trucks are hot. Going farther on a gallon of gas not only seems like a smart financial move in an era of $2-a-gallon gas, but you feel like you're doing your part to save the environment, too.

But will that popularity endure as the financial reality of hybrids becomes more clear: Lower fuel bills don't offset the extra cost of a gas-electric powertrain.

A new study by Edmunds.com, a California-based research company, shows that hybrids typically cost thousands more to buy, fix and run over a five-year period than comparable, conventionally powered vehicles.

The Ford Escape Hybrid, for example, costs $3,429 more to buy and run than an all-wheel-drive Ford Escape XLT. Gas would have to cost $5.60 a gallon, or you'd have to drive that hybrid 37,000 miles a year, to break even with the conventionally powered Escape.

The Toyota Prius costs $5,283 more than a Toyota Corolla LE. Gas would have to cost $10.10 a gallon or you'd have to drive the Prius more than 66,500 miles a year to break even with the Corolla.

Looking for a break-even proposition? Edmunds.com puts the total cost of a Prius at about that of a Toyota Camry LE. But are those truly comparable cars? Not in LI's opinion.

kristi
07-29-2005, 01:30 PM
While it makes logical sense that people purchase standard vehicles for economy, I think that the purchases of hybrids steaming along strong as ever may be the continuation of the anti-SUV sentiment of the gas-guzzling days when Navigators were flying off showroom floors. Owning a hybrid is a statement.

Like a BMW says "I've made it", a hybrid says "I'm enlightened". After all, this is why Honda called their first hybrid the Insight--they wanted to tap into an insightful, enlightened consumer that understands that fossil fuels are a limited resource. These kinds of people (in theory) would rather not know that hybrids don't make perfect fiscal sense--my observation is that these people are happy knowing they use less fuel than the Expedition next to them.