» With the rise in gas prices, hybrid owners can expect to recoup the extra cost of their vehicle in 3-6 years, a new study says.
rebecca's pocket
.: August2006 --> Hybrid premium recouped in 3 to 6 years
Hybrid premium recouped in 3 to 6 years
[ 08.23.06 ]
Comments
I wonder if that's just a sticker-price comparison. I'd have to think about the difference in terms of lost investment potential--would I rather gradually recoup my money over 5 years, or invest and add another $1000 to what I already had? I think more important than going hybrid is just using the smallest car that works for you. I think one of those cute little Euro diesel cars could be great [for me]. Of course, it's also hard to beat a bike if you live in the right spot.
Posted by: Mark Larson | August 23, 2006 7:52 AM
For me, the appealing aspect of the hybrid car has always been that it's easier on the environment. Up until now, buying a hybrid has meant paying a premium to be less impactive, a perfectly reasonable cost for some people (me). But for others, who don't feel as motivated, knowing that the premium will pay for itself in gas savings—meaning that after 5 years there is no premium—may be the information they need to buy a hybrid.
(To be honest, I don't think we drive enough in a year to come even close to these figures. If we were to buy a hybrid, it would be entirely for the environmental impact, not to save money in any way.)
As for your investment comparison, it seems to me that it's a matter of gradually recouping your money over 5 years, or gradually spending your money over 5 years. When you add inflation and rising gas costs, how much more will you make (in interest) than you will spend over that same period of time on gasoline?
Posted by: Rebecca Blood | August 23, 2006 10:12 AM
Valid points about inflation and fuel costs. I suppose you'd also have to factor in room for depreciation and eventual trade-in money you could get for the vehicle. Now that I think of it, I wonder which variety, hybrid or standard, has a better pre-owned market?
But there is more to the purchase than dollars and cents. Either way, I think we'll both agree that lower prices for earth-friendly[-ier] vehicle is a good thing.
Posted by: Mark Larson | August 23, 2006 9:39 PM