Economics Favor Altima Hybrid.

[xcel]

Nissan’s first priced within reason.

John Gartner - Autopia - Jan. 30, 2007

2007 Nissan Altima Hybrid.

Nissan today announced pricing for the 2007 Altima Hybrid, its first hybrid car, at $24,400. While that may seem like a hefty price for a passenger sedan, it actually is a better deal for consumers than the standard model.

Consumers who buy the hybrid model receive an instant tax credit of $2,350, so the price is really $22,050. The Altima Hybrid includes anti-lock braking system (ABS) and an automatic transmission, and is rated at 42 city/36 highway miles per gallon, for a combined fuel economy rating of 39.

If you add ABS and an automatic transmission to the 2.5S model (rated at 24/31 mpg, or 27 combined), you pay $20,800, or $1,250 less than the hybrid. Based on 12,000 miles driven per year at today's national average price of $2.16 per gallon, hybrid drivers would save $296 dollars per year. So in this worst case scenario that imagines gas prices not rising and people driving 33 miles per day, the Altima Hybrid "pays for itself" in about 4 years. But if gas goes back to $2.50 a gallon, the payback period is about 3.5 years.

Because of the extra power available from the electric motor, the Altima Hybrid has a net horsepower of 198, compared to the 175 hp of the base model. So if you are interested in buying an Altima and the six-cylinder engine is not a must-have, you'd be pretty crazy not to buy the hybrid model.

The Altima Hybrid also stands up well when compared to the Camry Hybrid, which costs more at $26,200 is rated at 147 horsepower, and has the same combined mpg rating.

[antrey]

At that price it'll seem like a better deal than the Civic Hybrid and Prius to many people.

[brick]

Wow, I'm impressed. It looks like "We think hybrids are stupid" Nissan just might make their model work in the marketplace. Heck I could have gotten out the door with that for roughly what I paid for the Prius once you factor in the tax credit. Not that I necessarily would have wanted it given my needs and the FE differences, but still. I hope for Nissan's sake that they sell like mad.

[msantos]

Agreed. Awsome pricing, content and FE performance.

However, Nissan's track record for reliability is not the brightest, particularly when compared to Honda or Toyota. Their last generation Altimas seem to have an unsettling number of issues that would make me think twice about purchasing one - more so when considering a hybrid version of it.

Cheers;

MSantos

[Pravus Prime]

Perhaps I've missed it, but do we know anything about their hybrid drivetrain? EV capabilities, etc.?

[msantos]

I believe it should mirror a typical Toyota's HSD system in the majority of its functions and behaviour.

I also know that Nissan is not too happy with the fact that the system owes its existence to Toyota instead of it having been an entirely in-house development. Talk about promoting someone else's IP portfolio. At least they have annouced work on their own hybrid solution. Because of this and other smaller reasons, I fear this Altima hybrid will soon be a technology orphan within Nissan. Especially if they succeed at creating a hybrid platform of their own without patenting conflicts with the existing players.

Not to be forgotten, in addition to the licensing fees, Toyota is perhaps relishing the release of the Altima as well. What better endorsement of its HSD system could there be other than having another major Japanese automaker use its system?

Higher sales? They've already got that.


Cheers;

MSantos

[rhwinger]

Hey, great price, better FE, another hybrid choice for the consumer. Okay, it's not a FE killer machine, but not everyone wants to drive a Prius.

Let 'er rip I say!

Bob

[noflash]

Now if they'd only sell them in more than 10 states.

[Dan]

Originally Posted by xcel and written by John Gartner

Consumers who buy the hybrid model receive an instant tax credit of $2,350

Should possibly read:

Originally Posted by xcel and written by John Gartner and appended by Dan

Consumers who buy the hybrid model [and who's tax liability at the end of 2007, after itemized or standard deductions is still $2,340 above AMT] receive an instant tax credit of $2,350 (where "instant" is defined as "some time after Feb 2008").

Guess I'm still a bit burned by the tax credit disqualification I'm likely to hit. Ohh well, having driven my new hybrid for a month, I easily would have paid full price without the credit. Just another reason to get rid of the IRS I suppose. Even the most well intentioned guesture in regards to taxes is dubious at best.

[xcel]

Hi Dan:

___I wanted to comment after I posted this item yesterday but the Blog comments afterwards is loaded with an almost complete misunderstanding of both a hybrids capabilities and its realities. Very unusual for a Wired magazine blog as there are usually some pretty sharp people that participate over there?

___Have you viewed the Article Fed, State, and Corporate hybrid purchase incentives. Yesterday, today, and tomorrow. Although I have not updated for the Altima, it should give you some insight as to how the tax credit is calculated.

___As far as AMT is concerned, anything paid beyond the level of an AMT threshold is a future deduction waiting to be realized when you have fallen below the level of the AMT sometime in the future. If some of us ever will? There is more to that nightmare tax scenario then meets the eye.

___Good Luck

___Wayne