August 23rd, 2006
Hybrids That Can Pay for Themselves
By Michael Santo
Executive Editor, RealTechNews
Alice earlier wrote that hybrid cars don’t save money, but times, and the price of gas, they are a-changing. I purchased a Prius earlier this year, but it wasn’t just to save gasoline … it was also for the “green” feeling and (let’s be honest) so I could use the carpool lane with my new longer commute to work.
Edmunds.com has done a study that shows that indeed, with tax credits and higher gas prices, some hybrid will pay off the premium prices that people pay for them.
The consumer-focused Web site said that assuming vehicles were driven 15,000 miles per year and gas was priced at $3 per gallon, owners of the Toyota Prius and Ford Motor Co.’s Escape Hybrid would break even within three years.
Buyers of the Saturn Vue Green Line from General Motors Corp., the Toyota Camry and the Civic Hybrid from Honda Motor Co. would break-even within six years, Edmunds.com said. Source: Reuters
We Say: I’m most likely going to hit 15K miles per year, and I see $3 gasoline or more as the most likely price point (at least in CA), so this is good news for me … in a way. No matter what, and despite the carpool lane bonus I get, I feel a lot greener driving my Prius.
Also, remember that after 60,000 vehicles have been sold, the tax rebates are phased out, so after September 30th, Prius buyers will only receive 1/2 the tax credit they would now. And, next April Toyota tax incentives will fall to 25% and be completely phased out by October 2007.
Eric N. says:
I’d love a Prius… to “feel green” but for the time being my Scion xB @ 29-31 MPG is the best I can do until I sell it in 2008.
August 23rd, 2006 at 2:22 pm
MarcosV says:
Hybrid cars that can pay for themselves with government subsidies and gas at $3 or more per gallon a few years afer the Prius entered the U.S. market.
It’s awesome to see hybrids becoming more and more mainstream — the hybrid cost penalty will probably be essentially gone in a few years at this rate. That’ll be about the time I’m shopping for a new car.
No matter how high gas prices get, at least I won’t be wasting a lot of it while idling in traffic.
August 23rd, 2006 at 8:03 pm
Stephen says:
With the tax credits being phased out within a year or so, I’d like to see a revised payback chart. I think you’ll see the payback increase to a lot longer term than most people plan to hold onto their car. Also, don’t count on that $3 a gallon gas continuing. Current studies show that there is so much oil flowing into storage facilities in anticipation of and against higher commodity future contracts that available storage is rapidly being depleted. When comparing current inventories versus price levels against those in the past there is no justification for oil being priced any higher than $40 per barrel.
August 25th, 2006 at 6:52 am