With fuel costs at record highs and prices quickly approaching $5 per gallon, the fuel savings associated with hybrid vehicles like Toyota's Prius and Honda's Insight can be very appealing. However, hybrid technology is relatively new, and many consumers aren't up to speed on the true costs and implications of hybrid vehicle purchasing. All hybrids are not created equal -- in fact, the term "hybrid" can mean many different things.
On the most basic level, a "hybrid" is a vehicle that uses two or more distinct power sources to move. In the US, hybrid essentially refers to a vehicle powered by both a gas motor and an electric motor. Car shoppers purchase hybrids primarily for one reason -- greatly improved fuel economy. Other purchasers cite concern for the environment as a motivating factor.
Whatever your motivation, there's a few things to consider before you pull the trigger on your new hybrid. First of all, it's important to weigh how much you'll save on gas against the extra purchase cost of a hybrid vehicle. Unfortunately, with hybrid technology still in its youth, electric motors and batteries remain costly and buyers should be prepared to spend more on a hybrid than on a traditional gas-powered vehicle. However, the long-term difference between 40mpg and 25mpg can also translate into significant savings.
Here's a brief breakdown of the fuel savings that would be typical of the leading hybrids:
- If you're like the average American, you drive your car about 30 miles everyday (12,000 miles per year).
- If you're like the average American, you're currently paying almost $4/gallon for gas in these difficult economic times.
- If you're like the average American, your gas-powered car gets around 20mpg.
- If you're like the average American, your hybrid car gets around 40mpg.
| Traditional | Hybrid |
| 1.64 gallons per day | 0.82 gallons per day |
| $6.57 on gas per day | $3.28 on gas per day |
| $46 per week | $23 per week |
| ~$200 per month | <$100 per month |
| ~$2400 per year | ~$1200 per year |
It's clear that hybrids offer significant savings on fuel after purchasing. If you can get over the hump of the inflated purchase price, there are 4-digit savings to reap later on. These can be quite substantial, especially when you consider the savings over the multiple-year term of a loan or a lease.
However, there are other costs to consider when owning a hybrid, including increased breakdown potential with the complexity of parts necessary to regulate the gas and electric motors. I'll detail these costs and other considerations more in my next article.
The age of the electric car is upon us, and you can never be too informed! Stay tuned.
