Not All Hybrid Purchases Will Benefit Drivers

According to a new study published at NADAguides.com, only a small number of hybrid vehicles available to consumers make good purchases from a financial perspective. The break-even point for some vehicles comes much sooner than it does for others, mainly due to the variable cost of gasoline around the country. Drivers in Los Angeles recover the extra cost of a hybrid vehicle the fastest, largely because gasoline is most expensive there.

Of the ten major cities analyzed, drivers in Houston wait the longest to recover the technology premium associated with hybrid vehicle technology. According to the analysis, a Los Angeles driver could recover the cost of a Toyota Camry hybrid after 18,300 miles, while a driver in Houston would need to drive 21,639 miles in the same model to save money. The Los Angeles driver would need 57,216 miles to break even on the purchase of a Honda Civic hybrid, while the Houston driver would need to cover 67,700 miles to realize a savings.

In general, drivers who have moderately long commute in and around major cities reach the break-even point much faster than drivers who work closer to home and live in an area where gasoline prices are lower. According to the site, the Toyota Camry hybrid, followed by the Chevrolet Malibu hybrid, Nissan Altima Hybrid, Toyota Prius and the Honda Civic hybrid make the most financial sense for most consumers. The study used the EPA's combined average fuel economy, the average MSRP for each of ten major US cities, and the local average price for regular unleaded gasoline in each locale. The study also assumed a five-year replacement cycle and compared each hybrid vehicle to its non-hybrid gasoline-powered counterpart. In the case of the Prius, the study compared it to the Toyota Camry LE.

The authors of the study recommend that drivers evaluate the purchase of a hybrid carefully and take into account their commuting distance, the price of gas and the difference in price between a non-hybrid model and a gasoline powered model. The authors predict that many drivers will save money by purchasing conventional vehicles.

Source: NADAguides.com