With the crazy fuel prices of today, most people (with the exception of those who drive SUVs) want fuel-efficient automobiles. I will be demonstrating this with three vehicles, all of which are Toyotas. Feel free to substitute them whith whatever car you like. Keep in mind that I have not factored in finance/interest or depreciation because this is meant to only cover efficiency. In this example, I will show you why it is not economical to purchase a gas-electric hybrid vehicle.
First, we must set some prices and specifications:
- Price of fuel per gallon: $4.50
Toyota Corolla:
- Price: $15,250
- Efficiency (city/highway): 27/35
Toyota Prius:
- Price: $21,500
- Efficiency (city/highway/combined): 48/45/46
Toyota 4Runner:
- Price: $28,415
- Efficiency (city/highway): 14/17
To get an accurate rating of each vehicle, we must find the
cost per mile (c/m):
Formula: (fuel
cost) / (efficiency) = c/m
Toyota Corolla:
- c/m = $4.50 / 31mpg = $0.1452 per mile
Toyota Prius:
- c/m = $4.50 / 46.5mpg = $0.0968 per mile
Toyota 4Runner:
- c/m = $4.50 / 15.5mpg = $0.2903 per mile
Assuming we will drive each car 50,000 miles, how much will it cost for fuel?
Formula: average(c/m) X 50,000 = total fuel cost
Toyota Corolla: $0.1452 X 50,000 = $7,260
Toyota Prius: $0.0968 X 50,000 = $4,840
Toyota 4Runner: $0.2903 X 50,000 = $14,515
Add the cost of the car with the cost of the fuel for the sub total:
Formula: (initial cost) + (total fuel cost)
Toyota Corolla: $22,510
Toyota Prius: $26,340
Toyota 4Runner: $42,930
As you can see, already the hybrid car is $3,830 more
expensive. A little known fact
about hybrid cars is that after 100,000 miles or less, the battery pack must be
replaced. The average cost for
these battery packs is anywhere between $2,000 - $3,000 US dollars. Some manufacturers are now offering this as a free replacement.
You may ask yourself, "Well at some point the hybrid has to be cheaper. Right?" Assuming the above prices and mileage on the vechiles,
and the free replacement of the battery pack, gas would have to be $11.65/gallon before you would break even.
If you are looking to get a hybrid to save money, stop right now.
However, if you want to help reduce the amount of polution you contribute to, and are willing to
spend the extra money, then by all means, go for it.