Value of Hybrid Cars
I am interested in getting a hybrid car (HEV). A plug-in hybrid
car in fact (PHEV). As of this writing, (P)HEV's are more expensive than the non-hybrid counterpart. That fact alone makes my friend ask the question: in 3 or 5 years of owning that (P)HEV, is it going to be worth the savings to pay for that extra price? A good question actually. A very intelligent question as a matter of fact! Which brought me to researching...
Typically, a plug-in hybrid car is priced up to 30% more (or higher) than the model's gasoline or diesel fueled counterpart. So a $20,000 sedan may have a $26,000 plug-in hybrid version in the market.
If you spend $40 a week to fill up the tank for a regular car, that's $160 a month or $1,920 a year or $5,760 in 3 years or $9,600 in 5 years.
Today, HEV's save around 40% to gasoline cost compared to its counterpart model. PHEV's add just around 25% to that so we're actually more realistic in the 50% savings range. Granted, your ROI for the PHEV version should be 6.5 years at best.
Take note that we haven't put in the equation the cost of plugging in the car. Depending on your needs, your possible addiction to plug-in the car to "save" on gas may kick your electric bill high enough so that the extra cost you paid for the hybrid version won't even come close to any form of a return on investment
.
So what's the deal? Unless you get the (P)HEV at the same price as the all-fuel version, there is really no savings. Is it worth it? For the most part, you only prove you can afford it.
Eating healthy is sometimes more expensive (have you compared the prices of organic to "regular" produce?). It seems that it's no different to living "green"... just yet. (P)HEV's are here and they should continue to flourish. It's a long term investment to push new lines of products that would revolutionize the transportation industry. It is expected to take time. To say the least, the revolution has begun. That's good news. Come to think of it, the wait won't be that long for sure...
car in fact (PHEV). As of this writing, (P)HEV's are more expensive than the non-hybrid counterpart. That fact alone makes my friend ask the question: in 3 or 5 years of owning that (P)HEV, is it going to be worth the savings to pay for that extra price? A good question actually. A very intelligent question as a matter of fact! Which brought me to researching...Typically, a plug-in hybrid car is priced up to 30% more (or higher) than the model's gasoline or diesel fueled counterpart. So a $20,000 sedan may have a $26,000 plug-in hybrid version in the market.
If you spend $40 a week to fill up the tank for a regular car, that's $160 a month or $1,920 a year or $5,760 in 3 years or $9,600 in 5 years.
- Assuming a PHEV would cut your gasoline cost in half, you basically save $960/year or $2,880 in 3 years or $4,800 in 5 years. That's not good enough to pay for the extra $6,000.
- Assuming a PHEV would cut your gasoline cost to a third, you save $1,280/year or $3,840 in 3 years or $6,400 in 5 years. That's almost looking good to pay for the extra $6,000.
- Assuming a PHEV could actually cut your gasoline cost to a quarter, you save $1,440/year or $4,320 in 3 years or $7,200 in 5 years. Now we're talking! Also, that's wishful thinking...
Today, HEV's save around 40% to gasoline cost compared to its counterpart model. PHEV's add just around 25% to that so we're actually more realistic in the 50% savings range. Granted, your ROI for the PHEV version should be 6.5 years at best.
Take note that we haven't put in the equation the cost of plugging in the car. Depending on your needs, your possible addiction to plug-in the car to "save" on gas may kick your electric bill high enough so that the extra cost you paid for the hybrid version won't even come close to any form of a return on investment
.So what's the deal? Unless you get the (P)HEV at the same price as the all-fuel version, there is really no savings. Is it worth it? For the most part, you only prove you can afford it.
Eating healthy is sometimes more expensive (have you compared the prices of organic to "regular" produce?). It seems that it's no different to living "green"... just yet. (P)HEV's are here and they should continue to flourish. It's a long term investment to push new lines of products that would revolutionize the transportation industry. It is expected to take time. To say the least, the revolution has begun. That's good news. Come to think of it, the wait won't be that long for sure...
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