Sunday, May 27, 2012
Should I Buy a Hybrid?
With gas prices on the rise and at the level they are at today, many people are probably asking themselves this very question. The answer, as you may have guessed, is different depending on why you want to buy a hybrid.
If you are considering buying a hybrid vehicle to be "green" or lessen your impact on the environment, then you just need to decide if the extra cost of a hybrid is worth it to you. If the extra money it's going to cost you when buying the car satisfies your desire to lessen your carbon footprint, then a hybrid is for you.
If you are like most people and are considering a hybrid to save money on gas, then read on and let me shed some light on the math involved to see if it's worth it for you. I will show you how long it will take you to "break even" when comparing a hybrid (Toyota Prius) and a fuel efficient gasoline-only vehicle like a Toyota Corolla.
Let's take a look at the numbers. The comparison will be based off MSRP of each vehicle, 15,000 miles per year driven (average mileage), and I will use the Combined MPG for the calculations. The fuel price I will use is $3.39 per gallon of Regular 87 octane.
Purchase Price and Fuel Mileage Numbers according to Toyota.com & FuelEconomy.gov
If you are considering buying a hybrid vehicle to be "green" or lessen your impact on the environment, then you just need to decide if the extra cost of a hybrid is worth it to you. If the extra money it's going to cost you when buying the car satisfies your desire to lessen your carbon footprint, then a hybrid is for you.
If you are like most people and are considering a hybrid to save money on gas, then read on and let me shed some light on the math involved to see if it's worth it for you. I will show you how long it will take you to "break even" when comparing a hybrid (Toyota Prius) and a fuel efficient gasoline-only vehicle like a Toyota Corolla.
Let's take a look at the numbers. The comparison will be based off MSRP of each vehicle, 15,000 miles per year driven (average mileage), and I will use the Combined MPG for the calculations. The fuel price I will use is $3.39 per gallon of Regular 87 octane.
Purchase Price and Fuel Mileage Numbers according to Toyota.com & FuelEconomy.gov
- 2012 Prius II - $24,985 - Only option is Carpet Floor Mats
- 51 mpg City - 48 mpg Highway - 50 mpg Combined
- 2012 Corolla LE - $18,799 - Only option is Carpet Floor Mats
- 26 mpg City - 34 mpg Highway - 29 mpg Combined
Annual Fuel Cost for a 2012 Prius II:
15,000 miles per year / 50 mpg = 300 gallons used per year
300 gallons used per year X $3.39 per gallon = $1,017.00 annual fuel cost
Annual Fuel Cost for a 2012 Toyota Corolla LE:
15,000 miles per year / 29 mpg = 517.24 gallons used per year
517.24 gallons used per year X $3.39 per gallon = $1,753.44 annual fuel cost
MSRP Price difference between 2012 Prius II and 2012 Corolla LE is $6,186.00.
Annual fuel savings of a Prius = $736.44
How many years it will take you to "break even" just from the difference in purchase price:
$6,186 price difference / $736.44 annual fuel savings = 8.4 years
Now there are a number of variables that come into play here and some of them are the price of gas, the number of miles that you drive, the fuel economy that YOU get out of the vehicle and the incentives that are on the vehicle when you purchase it. Currently (May 2012), the Prius has no incentives on it, where the Corolla has a $500 rebate or 0% financing for 60 months. The incentives make the Corolla an even more favorable purchase instead of a Prius.
I'll give you three more examples, but I'm not going to show all the math. The first example is if gas goes to $5.00 per gallon. In this situation, the time required to break even is reduced to 5.7 years. The second example is if you drive 30,000 miles per year (gas at $3.39). 4.2 years is required in this scenario to break even. The final example is if gas goes to $5.00 per gallon and you drive 30,000 miles per year. The higher number of miles that you drive and the higher gas prices go, the more advantageous a Prius becomes. The last scenario requires 2.8 years to break even.
When purchasing a vehicle there are many things to consider and for those that are considering buying a hybrid, maybe this will give them some insight whether a hybrid is right for them and help keep more of their hard-earned money. All these calculations can't factor in each individual's value they place on being "greener". To some, it may be worth it to spend the extra money up front to have a lesser impact on the environment and gradually save money on gas over time.
With the introduction of the new Prius C, Toyota has narrowed the price gap considerably, but the Prius C is a smaller vehicle than a Corolla. You will always have a trade-off whether it's price, size, mileage, etc. You need to decide for yourself, what factors are the most important.
With the introduction of the new Prius C, Toyota has narrowed the price gap considerably, but the Prius C is a smaller vehicle than a Corolla. You will always have a trade-off whether it's price, size, mileage, etc. You need to decide for yourself, what factors are the most important.
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Toyota has offer many kinds of hybrid version. I think the downside is just it comes in high price tag.
ReplyDeleteTrue as of right now, but the price differences are decreasing. More Hybrids are on the way too with the Avalon Hybrid and the Rav4 Hybrid.
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