Is a Hybrid Vehicle Really Worth It?

So is a Hybrid Vehicle Really Worth It? The short answer is probably not (at least not yet).

Sure, Hybrid vehicles have less pollution and are the most fuel efficient vehicles on the road. Reducing ones car’s environmental impact is important for many people. If that’s what you are looking for then the answer would change. However, HelpYourMoney is a financial and investments website so I’m sticking to the cost benefits of owning a Hybrid Vehicle. A Hybrid Vehicle is better for the planet than your wallet.

Here Are The Top Two Reasons Why a Hybrid Vehicle is Probably Not The Best Financial Choice:

• To Save Money or Get a Return on Your Money: You will probably pay several thousand dollars more to get that new Hybrid vehicle in comparison the same non-hybrid model. The latest study on break-even points of hybrid cars shows that in most cases, an owner would have to drive a hybrid tens of thousands of extra miles a year or gasoline would have to hit huge levels to reach a break-even point with a comparable gas-powered model.That will take between five and twenty years, depending on gas prices, the amount you drive, and how good of a deal you got on the car.

The study shows, “If people go in with the idea they are saving money, they are mistaken,” says Jesse Toprak, pricing director for Edmunds.com, an automobile research site.

Consumer Reports has done its own study on the Cost-Savings of Hybrid vehicles and came to the same conclusion.

“One of two main reasons, according to a recent analysis by Consumer Reports, is an additional cost that has typically been treated as an unknown: depreciation. Another factor, the report found, is purchase price — hybrids simply have higher sticker prices than their non-hybrid counterparts, and gas savings don’t do nearly enough to close the gap.

According to Consumer Reports’ analysis of six hybrid gasoline/electric vehicles, they will lose 2 percent to 3 percent more in value over five years of ownership than otherwise identical non-hybrid vehicles.

With the purchase price difference, depreciation and other costs like financing and insurance factored in, only the Toyota Prius and Honda Civic Hybrid would save owners any money — $406 and $317, respectively, over 5 years. That final figure includes the impact of a federal tax incentives for hybrids. Without those incentives, Prius buyers face a net cost of ownership of $2,700 more than Corolla buyers.

Other hybrid vehicles would cost owners thousands more than non-hybrids over five years of ownership, even after federal tax credits.” Source: Hybrids, Save Money Not Gas

• To Get The Exact EPA Numbers:

“Hybrid buyers are often disappointed that they don’t get the fuel economy numbers listed on the window sticker in their regular driving. “I just love my Honda Civic Hybrid, but I have been a bit disappointed that the gas mileage isn’t better,” says Ivey Doyal of Atlanta, Georgia.

To be sure, there is a discrepancy between the EPA’s fuel economy ratings, listed on the window sticker, and the “real-world” results most drivers experience. This is true regardless of the type of vehicle you drive, because the testing procedure the EPA uses to generate these numbers is outdated and not indicative of the way most Americans drive today. The EPA has made adjustments to its calculations to try to compensate for this. Even with these adjustments, however, the numbers still often differ from the real world. “We’ve seen where the typical driving style can be as much as 20-percent less than the EPA fuel economy number,” says Bienenfield.

While all vehicles are affected by this discrepancy, hybrid vehicles appear to be more affected by it. “For example,” explains Bienenfield, “a vehicle that has a fuel economy rating of 20 mpg may only get 18 mpg, while a vehicle that is rated at 50 mpg may only get 45 mpg. This seems like a bigger issue for the more fuel-efficient vehicle, but in reality both vehicles are off by 10 percent.” Source: The Real Costs of Owning a Hybrid

Here is another article talking of some Toyota Prius Hybrid Vehicle complaints about actual EPA

So what is the best vehicle choice? It really depends on your financial situation and wants, but in most cases you are probably better off going for the non-hybrid counter part. According to Consumer Reports, only two hybrids can save you money after the first five years: the Prius Hybird and the Honda Civic hybrid. However, once the capped tax credits for hybrids expire, these vehicles may possibly cost more than their conventional counterparts.

If you are going to Hybrid route my research has shown that the Toyota Highlander hybrid is the best SUV Hybird pick over $30,000 and that the Toyota Prius hybrid is the best car choice.

Most people do need a vehicle and consider it a need. However, the type of vehicle you choose often comes down to a personal “want” in addition to your financial situation. Do your own research and compare the pros and cons of both non-hybrid and hybrid vehicles and I hope you will be happy with your decision whatever it may be.