Archives




View Full Version : The Economics of Fuel Economy


johnf514
08-08-2006, 11:08 AM
The news said it could takes months to repair the pipe in Alaska. Good timing, too *sarcastically rolls eyes* Sales of hybrids will probably increase, as they did level off recently. However, when it comes down to the purchase of a hybrid, I have some thoughts.

A Toyota Prius (a very popular hybrid seller) MSRP's around $26-29K, or more depending on demand. If you go and get a Toyota Corolla (MSRP at $15-17K), you can save $10-12K easily off the bat. Ok, so what's the big deal? Well, the Prius gets 50-60 MPG when driven normally, which adds up to $550/year in fuel costs (at $3/gal) if someone drives 10,000 miles/year. Say you bought the Corolla, which gets 35-40 MPG. Fuel costs are $800/year driving 10,000 miles/year with $3/gal fuel prices. But remember, with the Corolla, you saved $10K off the bat! So to make up that difference in price between the two vehicles, you would have to own and drive the Prius for over 25 years! And that doesn't even include extra repair and maintanance costs of a hybrid.

So what am I saying? Until hybrids become affordable and competitive with other small-engine "normal" vehicles of the same size, the extra outlay in funds when initially purchasing the vehicle just isn't worth it. But they should paint a rosy picture, don't they? =P This is the reason I continue to drive my Taurus (7+ years old) and *not* buy a new, more fuel-efficient car. I'm getting decent MPG currently (32-33 MPG), and the money spent for new car would take years to recoup in better fuel economy.

Hybrid cars are a wonderful invention, but the invention needs refining. Plus, starting in 2008, they can't go in the carpool lanes and the tax-breaks the government is giving folks on them are shrinking.

This was actually written in an email for a friend of mine, but I wanted to post it here to hear your thoughts. Remember, I mean no disrespect at all, and am very thankful to all of the Hybrid drivers out on the roads doing their part.

Keep it up, hypermilers! =)

brick
08-08-2006, 11:26 AM
It all depends on how you look at it and how much you drive. It probably doesn't help to look at the GH database, which shows that the average Prius II doesn't even get 50mpg. (The average there is, what, 48mpg?) Darned fine FE considering the driving habits we're probably talking about, of course. I bet an equivalent fleet of Corollas would hardly break the 30mpg barrier.

My perspective on Hybrids has changed dramatically as a result of learning how to drive for FE. When I bought my Accord I didn't even bother to look for a hybrid because I figured it wasn't worth the extra money. (Dumb move on my part!) Now it's apparant how much simpler the high-FE driving tactics are when you're in a vehicle that is actually designed for them! The battery assist isn't nearly as appealing to me as the thought of going down a hill, thinking "I want to coast...now," and simply releasing the throttle then killing regen to do it. If my current car had that technology plus autostop, 45+mpg tanks would be practically effortless! Since we're talking about economics, that technology would also mean that I wouldn't have to worry about the possibility of a premature clutch, starter, or ignition switch replacement.

Some people will never be convinced, of course. At least the writer of this email sounds relatively level-headed about it.

johnf514
08-08-2006, 11:33 AM
Some people will never be convinced, of course. At least the writer of this email sounds relatively level-headed about it.

I do appreciate the compliment. I'm a financial analyst, and by nature look at things for a dollars-and-sense point of view. Strictly speaking, the benefits of a hybrid are yet to be fully appreciated monetarily, as an equivalent standard-gasoline engine vehicle can be had for a significantly less amount of money. At the point at which either can be acquired for roughly the same cost (factoring in fuel savings), convincing me will be easy. :)

However, there is something to be said for the social and personal impact that such a purchase conveys. :)

hawkgt647
08-08-2006, 12:08 PM
I too have mixed feelings about the extra cost of hybrids - and I own one, an Insight. But I would have spent the same amount of money for some other vehicle, whatever it might be, and not get anywhere close to the same MPG's. So why not a Hybrid? It works for me, but it fits my needs. It's definitely not for everyone.
But the price wasn't the main thing, I was more interested in the technology built into the car. Looking at it from that viewpoint, I feel like it was a bargain. I didn't sit down and "run the numbers" to try to justify my purchase. I didn't need to.

But on the other hand, when friends and co-workers ask about buying a hybrid, I neither encourage or discourage them. There are too many gas-sipping small cars (non-hybrids) to choose from. Anyone of them would make a good choice for someone that would drive it with fuel economy in mind. They would all be a huge boost in FE compared to what most people are driving.

And I can't understand making a comparison between the Prius and Corolla. I think the Prius does not have an equal, but I would compare it to a Camry before the Corolla.

I've said it before, why can't the auto manufacturers build a small aerodynamic pickup with a fuel efficient engine and decent tranny/ gearing. Add a few hybrid components - autostop, FCD and regen braking to boost a larger battery (not a full-blown battery pack - just a couple of big deep cycle lead acids. Keep the price down). Or use a big flywheel for autostop/restarts.
40 mpg should be realistic with today's technology. I'm a GM fan from years ago, it'd be cool to see a new generation El Camino designed for fuel economy. I'd buy it in a heartbeat.

tbaleno
08-08-2006, 12:28 PM
I've said it before, why can't the auto manufacturers build a small aerodynamic pickup with a fuel efficient engine and decent tranny/ gearing. Add a few hybrid components - autostop, FCD and regen braking to boost a larger battery (not a full-blown battery pack - just a couple of big deep cycle lead acids. Keep the price down). Or use a big flywheel for autostop/restarts.
40 mpg should be realistic with today's technology. I'm a GM fan from years ago, it'd be cool to see a new generation El Camino designed for fuel economy. I'd buy it in a heartbeat.

This is basicly what GM's BAS is in the view. Unfortunately it doesn't get 40mpg.

xcel
08-08-2006, 08:52 PM
Hi Johnf514:

___Supposedly, Toyota is offering a $1,000 Cash to dealer incentive for pushing Prius’ nowadays although I have not yet confirmed it …

___Now take a look at this and I think you will change your mind wrt to the Corolla/Camry vs. Prius II …

Friend purchases a brand new, 2006 Toyota Prius II for $18,155 + tax! (http://www.cleanmpg.com/forums/showthread.php?t=1615)

___Good Luck

___Wayne

johnf514
08-09-2006, 08:11 AM
Funny you should post that, xcel. I just talked to a friend who purchased a 2004 Prius with 20K miles for $11,000 about six months ago. :rolleyes:

Tochatihu
08-09-2006, 11:54 AM
Dang, John, that 2004 Prius price is comparable to what the salvage-titled vehicles are going for. I am tempted to add a dancing banana.

DAS

brick
08-09-2006, 12:19 PM
Hooray for dancing bananas:
:Banane04: :Banane48:

The price is pretty astounding, and quite a bit less than I paid for my '02 Accord with 25K mi last summer. Either your friend lucked out or the rest of us are terrible used car shoppers!

philmcneal
08-09-2006, 03:35 PM
yes i was looking at ebay used salvage priuses... oh man the price is RIGHT ON THE MONEY at 50% of what compared to paying at canada! heck having a MPG display and being able to change the speedo is a huge bonus!! (plus low mileage)

but nooooooooooooo my dad had to be agaist salvage cars.... saying such about the suspension will go out on me one day since its already been in an accident. ugh.... stupid myths from preventing me from getting the car I want! BS!

oh and the payback period? for me it will be MUCH MUCH shorter, assuming say i had to pay a difference of 2-5 G to trade up my car for a hybrid? I don't plan to get mileage like all the other whiners out there ;)

oh and hybrid is not about saving fuel, its all the cool stuff that comes with it... LIKE STEALTH :D



Copyright 2006 Clean MPG, LLC. All Rights Reserved.