Are Hybrids More Expensive To Own Than Conventional Cars?
Sharp-eyed readers will note an interesting corollary from the CAA 2011 Driving Costs guide mentioned in the previous post, namely that hybrid cars apparently cost more than conventionally powered compacts. In the report, a Chevy Cruze and a Toyota Prius are compared to determine gas, depreciation, tires, insurance, and maintenance costs per kilometer.
The somewhat surprising conclusion is that although the Prius is cheaper to operate at 9.2¢/km, the daily expense is $21.48. The Cruze costs more to operate – 14.7¢/km, but has a lower daily average of $17.09. Travelling 18,000 km/yr showed a definite advantage to the Cruze at 49.4¢/km compared to the Prius at 52.8¢/km. Even if both vehicles are driven 32,000km/yr, the Cruze still costs a half cent less to operate at 35.9¢.
Note: CAA calculated gas at $1.29/L
Does being more environmentally responsible mean paying more out of pocket? The above comparison only evaluates financial differences and does not consider the "green" benefits. Manufacturers are quickly closing the price differentials between alternative fuel vehicles and internal combustion vehicles. In order to reach public critical mass, a clear economic incentive for hybrids and electrics is needed so that manufacturers can meet minimum production levels. Auto industry officials project hybrid vehicle prices will come down as the vehicles become more plentiful and there are greater economies of scale. After all, government rebates are not a long term solution. Will you consider a hybrid or alternative fuel car for your next purchase?