Re: Gas Prices Rising
Out of curiosity, how much more did the hybrid version cost? From what I've seen the hybrid range seemed about 8-10k more expensive. For that money it claims to get 28/28 mpg city/highway as opposed to 20/25.
(12,000/28)*$4 = $1,714 per year
(12,000/25)*$4 = $1,920 per year
(12,000/20)*$4 = $2,400 per year
Savings = $206 - $686 per year. Assuming $8,000 price difference, $4per gallon and the middle of that range it would take ~18 years to make up the difference. However, this is the 4 cylinder non-hybrid which has less power and torque than the hybrid. The non hybrid V6 with 4wd gets 17/22:
(12,000/22)*$4 = $2181
(12,000/17)*$4 = $2823
Savings = 467 - 1109. So with the same assumptions it would take about 10 years. However, the non-hybrid V6 also lists MORE power and torque so that's not a fair comparison either. I can only assume the maintenance on the hybrid costs more, but maybe I'm wrong.
Obviously all this changes dramatically with 8 dollar gas (or higher mileage per year). But it would still take 5 years not counting the opportunity cost of the money and the fact that the car is less powerful. And that would be 8 dollars if it started day one.
What are the hybrid buyer's motivations? Is it environmental? Financial - fear of gas prices doubling or worse? Enjoyment of the technology? Super long commutes? I'm considering a hybrid for my next car so I'm not trying to be insulting. I just can't quite figure out if the numbers make sense or if it only makes sense for the sake of using less gas on principle or having the latest tech. I suppose the car is still also worth more after 5 years or 10 years so maybe that is the difference. The resale value gap probably widens as gas prices go up as well.
Has anyone else run the numbers? At what gas price is a hybrid worth the extra cost within 5 years?
Originally posted by aaron
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(12,000/28)*$4 = $1,714 per year
(12,000/25)*$4 = $1,920 per year
(12,000/20)*$4 = $2,400 per year
Savings = $206 - $686 per year. Assuming $8,000 price difference, $4per gallon and the middle of that range it would take ~18 years to make up the difference. However, this is the 4 cylinder non-hybrid which has less power and torque than the hybrid. The non hybrid V6 with 4wd gets 17/22:
(12,000/22)*$4 = $2181
(12,000/17)*$4 = $2823
Savings = 467 - 1109. So with the same assumptions it would take about 10 years. However, the non-hybrid V6 also lists MORE power and torque so that's not a fair comparison either. I can only assume the maintenance on the hybrid costs more, but maybe I'm wrong.
Obviously all this changes dramatically with 8 dollar gas (or higher mileage per year). But it would still take 5 years not counting the opportunity cost of the money and the fact that the car is less powerful. And that would be 8 dollars if it started day one.
What are the hybrid buyer's motivations? Is it environmental? Financial - fear of gas prices doubling or worse? Enjoyment of the technology? Super long commutes? I'm considering a hybrid for my next car so I'm not trying to be insulting. I just can't quite figure out if the numbers make sense or if it only makes sense for the sake of using less gas on principle or having the latest tech. I suppose the car is still also worth more after 5 years or 10 years so maybe that is the difference. The resale value gap probably widens as gas prices go up as well.
Has anyone else run the numbers? At what gas price is a hybrid worth the extra cost within 5 years?
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