xcel
07-15-2006, 10:15 AM
Economics don't add up, experts say. (http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060715/BIZ/607150341)
Eric Ruth - Gannett News - July 15, 2006
http://www.cleanmpg.com/photos/data/501/2006_Civic_Sedan.jpg
2006 Honda Civic EX better bet?
These days, plenty of people are probably having the same thought as they watch pump prices rise, gas gauges fall and their money vanish out the tailpipe:
Maybe it's time to buy a hybrid.
But experts say while today's hybrids are vastly improved over early models, and remain a great choice for environmental reasons, they still don't boast enough of an economic advantage to stand up as a wise investment.
Once drivers factor in the higher initial purchase price and steep depreciation, their new gas-sipper may actually cost them more to operate over the life of the vehicle than a traditionally powered car.
"There is absolutely no reason to buy a hybrid for economic reasons," said Terry Jackson, automotive writer for the consumer site Bankrate.com.
But hybrid owners can boast a clear advantage over the owners of traditional cars in a couple of ways - their warranties and their environmental impact. For each gallon they save, hybrids prevent 18 pounds of carbon dioxide emissions, Consumer Reports says.
Many of today's hybrids offer better mileage. In some cases, it's a 20-mile-per-gallon difference.
But mileage alone isn't enough to outweigh hybrids' disadvantages for most drivers, said Philip Reed, consumer advice editor for Edmunds.com, a consumer finance-oriented Web site.
People who switch from a car that is already relatively fuel-efficient would have to own a hybrid for more than 100,000 miles to see savings.
"You can't assume that a hybrid is synonymous with good fuel economy," said Reed.
Ultimately, savings-minded drivers are better off buying a diesel, or a traditionally powered car, the experts agreed.
Take Motor Trend's 2006 Car of the Year, for example - the Honda Civic sedan.
A traditional Civic is estimated to get 30 miles per gallon in the city, 40 mpg on the highway. At $3 a gallon and 15,000 miles a year, it would cost $1,286 for fuel, assuming the driver averaged 35 mpg. The hybrid model of that Civic getting 49/51 mpg would use only $900 in gas.
Those are impressive numbers, but potential hybrid owners need to take their calculations out further, experts say, and consider the less noticeable costs of ownership.
The first is the initial purchase cost. While traditional models often can be found at a discount, hybrids are typically priced at a premium over traditional models - a Honda Civic hybrid, for example, costs almost $4,000 more than a Honda Civic EX with a manual transmission, Consumer Reports notes. The higher price will in most cases mean higher financing costs than buying a traditional car.
Hybrid buyers are being offered a much more attractive tax break this year, but caution is warranted. Last year, hybrid buyers qualified for up to $2,000 in deductions, which let them reduce only their taxable income. Starting in 2006, they are being offered up to $3,400 in tax credits, which allows them to cut their burden far more by reducing overall taxes.
Eric Ruth - Gannett News - July 15, 2006
http://www.cleanmpg.com/photos/data/501/2006_Civic_Sedan.jpg
2006 Honda Civic EX better bet?
These days, plenty of people are probably having the same thought as they watch pump prices rise, gas gauges fall and their money vanish out the tailpipe:
Maybe it's time to buy a hybrid.
But experts say while today's hybrids are vastly improved over early models, and remain a great choice for environmental reasons, they still don't boast enough of an economic advantage to stand up as a wise investment.
Once drivers factor in the higher initial purchase price and steep depreciation, their new gas-sipper may actually cost them more to operate over the life of the vehicle than a traditionally powered car.
"There is absolutely no reason to buy a hybrid for economic reasons," said Terry Jackson, automotive writer for the consumer site Bankrate.com.
But hybrid owners can boast a clear advantage over the owners of traditional cars in a couple of ways - their warranties and their environmental impact. For each gallon they save, hybrids prevent 18 pounds of carbon dioxide emissions, Consumer Reports says.
Many of today's hybrids offer better mileage. In some cases, it's a 20-mile-per-gallon difference.
But mileage alone isn't enough to outweigh hybrids' disadvantages for most drivers, said Philip Reed, consumer advice editor for Edmunds.com, a consumer finance-oriented Web site.
People who switch from a car that is already relatively fuel-efficient would have to own a hybrid for more than 100,000 miles to see savings.
"You can't assume that a hybrid is synonymous with good fuel economy," said Reed.
Ultimately, savings-minded drivers are better off buying a diesel, or a traditionally powered car, the experts agreed.
Take Motor Trend's 2006 Car of the Year, for example - the Honda Civic sedan.
A traditional Civic is estimated to get 30 miles per gallon in the city, 40 mpg on the highway. At $3 a gallon and 15,000 miles a year, it would cost $1,286 for fuel, assuming the driver averaged 35 mpg. The hybrid model of that Civic getting 49/51 mpg would use only $900 in gas.
Those are impressive numbers, but potential hybrid owners need to take their calculations out further, experts say, and consider the less noticeable costs of ownership.
The first is the initial purchase cost. While traditional models often can be found at a discount, hybrids are typically priced at a premium over traditional models - a Honda Civic hybrid, for example, costs almost $4,000 more than a Honda Civic EX with a manual transmission, Consumer Reports notes. The higher price will in most cases mean higher financing costs than buying a traditional car.
Hybrid buyers are being offered a much more attractive tax break this year, but caution is warranted. Last year, hybrid buyers qualified for up to $2,000 in deductions, which let them reduce only their taxable income. Starting in 2006, they are being offered up to $3,400 in tax credits, which allows them to cut their burden far more by reducing overall taxes.