Hybirds Don't Really Save You Money $$$

[Mike Jung]

For those thinking of getting a Hybrid...

The higher cost of hybrids

We all agree that hybrid vehicles are a step in the right direction for helping our environment, but what do they really cost, broken down over seven years, including financing, insurance and gas?

John LeBlanc
Toronto Star

Apr 05, 2008


When it uses its electric motor or generator instead of its gas engine, a hybrid vehicle can sip less fossil fuel and emit fewer tailpipe emissions than its gasoline-only counterpart.

But despite the potential for reducing fuel costs, does driving a hybrid vehicle really save money? What are the real financial economics of "going green?"

To find out, we looked at three popular vehicles that offer gas and hybrid versions: Ford Escape, Saturn Aura and Toyota Camry.

We then estimated the complete costs of ownership over a seven-year lifespan, which is how long most Canadians typically own a vehicle from new.

Based on driving an average of 24,000 km (14.9K miles) per year (typical of most leases), we made sure to include all those often forgotten financial factors like destination charges, financing, taxes, government energy rebates, insurance – as well as the cost of fuel.

Because the majority of Canadians finance their new vehicles, our gas-versus-hybrid cost estimates first involved a "virtual" zero-down, 48-month factory lease with 96,000 free km (59.7K miles).

All factory finance rates and residuals were based on March 2008 numbers, which may change in April.

We then "bought" the vehicle at its lease buyout value with a bank loan at 7.75 per cent annual rate – 2.5 over prime – for a final three-year term.

Because all three automakers offer three-year/60,000 km (37.3K miles) bumper-to-bumper and eight-year/160,000 km (99.4K miles) warranties for the unique hybrid components, with actual costs heavily dependent on individual use, we left this out of our cost estimates.

In regards to insurance costs, for our purposes, we used a 40-year-old male living at the Star's Yonge St. address. (Surprisingly, the differences were within tens of dollars per year in favour of the gas-only models.)

Automakers themselves like to market hybrids against thirstier V6 gas models.

"The Camry Hybrid offers the same level of performance as the V6 gas models," says Toyota Canada's Melanie Testani, a claim Ford Canada makes for its Escape.

But growing concerns about the economy and continually rising fuel costs mean many consumers today are choosing thriftiness over performance.

Therefore, we've compared similarly equipped four-cylinder models against the hybrids.

One thing to keep in mind: in the case of Ford and Toyota, the hybrid version includes costly options not on the gas version. Hybrids are expensive to develop, and adding high-margin options can help recoup some costs.

If you're counting pennies more than kg of CO2 saved, even the Camry Hybrid – the most fuel efficient vehicle here – ultimately costs an estimated $1,298 more over seven years to own than its conventional gas counterpart, mainly due to its initial purchase price and a higher end-of-lease buyout.

There's no argument: Drive a more fuel-efficient vehicle, and you'll cause fewer emissions. But as gas-vs.-hybrid cost comparisons prove, driving a hybrid does not equate to saving money.

After 168,000 km (104.4K miles), an Escape Hybrid would emit an estimated 26,530 kg (58,488 lbs) less CO2 than the gas XLT model – the greatest savings of this trio. But there is a real, measurable cost to "going green."

At $1.50 a litre ($5.68 per US Gallon) for gas, for each kilogram of CO2 saved, it costs an estimated 53 cents in the Ford hybrid. The Saturn works out to 14 cents and Toyota 7 cents.

But realistically, it would take European-like gas prices of $2 a litre ($7.57 per US Gallon) before even a highly fuel efficient vehicle like the Camry Hybrid would start paying a return.

Even then, after 96,000 km (59.7K miles), the amount would be about $900.

Unfortunately, when it comes to the economics of hybrids, there's no free lunch.

Ford Escape analysis

Saturn Aura analysis

Toyota Camry analysis

[Pinnacle]

wow almost $84000 for the Ford thats crazy.

[Ajaxus]

I'll think of the Hummer vs. Prius thread each time I hear about hybrids being "environmentally friendly"..

[Mike Jung]

Originally Posted by Pinnacle

wow almost $84000 for the Ford thats crazy.

Umm, for those that didn't read the article...

Over 7 years of ownership with insurance & gasoline.

Total cost over 7 years: $83,826 Cdn

vs for the gasoline version

Total cost over 7 years: $69,681 Cdn

[bigbenSC]

^^^ Keep in mind that those are funny Canadian dollars...

[Pinnacle]

Originally Posted by Mike Jung

Umm, for those that didn't read the article...

Over 7 years of ownership with insurance & gasoline.


vs for the gasoline version

Ya, I read the article and seen its 7 years

[Mike Jung]

Originally Posted by Pinnacle

wow almost $84000 for the Ford thats crazy.

Originally Posted by Mike Jung

Umm, for those that didn't read the article...

Over 7 years of ownership with insurance & gasoline.


vs for the gasoline version

Originally Posted by Pinnacle

Ya, I read the article and seen its 7 years

^
That was for those who didn't read the article...& were thinking $84K
It's oblivious that you read something, if you got that #.

[Pinnacle]

Originally Posted by Mike Jung

^
That was for those who didn't read the article...& were thinking $84K
It's oblivious that you read something, if you got that #.

Ok so now everyone knows

[Cormaster]

When hybrids came out I thought the idea was cool, and it was the future of cars. Now I don't quite feel that way. Its been what 7 years since the first hybrid came out, and they are still ungoldy high in price, and now with refined EPA standards they aren't reporting NEAR the fuel economy they did 7 years ago. I think the best bet for fuel savings is to get a small car with a small engine ie the honda fit, Toyota Yaris, or Smart Car.

Hybrids are just becoming a joke. You guys see the new mailbu hybrid? has an hybrid system with an ecotech 2.2 liter in it, and it gets a whopping 2mpg difference. Who cares at that point? Then theres these hybrid SUV's that get like 15-21...wow!

[AaronGTR]

Yeah, nothing new there. I've known for a long time that hybrids do not pay for themselves. They are just a way for uninformed hippy activists to make a statement. Don't get me wrong, I'm all for saving the environment... but there's something wrong when people buy a prius thinking they are helping the environment, without knowing that building a prius creates more pollution than building and driving an F-150.

[Mike3800]

hybrids are still a big joke to me, especially the amazing 19MPG SUV hybrids. WOW 19MPG. pffft.....


What are hybirds? Must be a crazy Canadian thing.

[Cormaster]

I think if they could make a hybrid affordable it would be a good idea, but most of the people who can afford to buy one can also afford the $100/week in gas. I kinda think the hybrid will die soon. After all, seems the small cars with small engines idea is taking off a LOT more!

[lone_wolf025]

I can't help but think of the comparison popular mechanics did in real life driving of models like the camry and civic hybrids against their gas only counterparts. The end result was that the hybrids cost more $$ for 1 or 2 mpg more than the gas only models. IIRC there was one instance where the average mpg for one of the gas only vehicles actually SURPASSED that of the hybrid.

Ideally speaking, hybrids are a good step in advancement of technology, but they are NOT the "green" solution they are so heavily marketed as, nor will they solve the problems concerning oil.

[AMRAAM4]

Originally Posted by Pinnacle

Ya, I read the article and seen its 7 years

nice English skills :

[Exodus]

Its pretty new technology and there is no competition for fossil fuels. Wait till alternative fueled engines come to the market, like Hydrogen, gas companies will be investing in hybrid gas/electric cars so there will still be a demand for oil in automobiles. Until then, expect hybrids to be the minority.

[PhantomLover007]

Ehh. The old Metro's used to get better MPG than most of the stuff out right now. Around 50 MPG. FTW! They could have used that for a basis in making the hybrids instead of trying to reinvent the wheel.

[bigbenSC]

Originally Posted by Cormaster

I think if they could make a hybrid affordable it would be a good idea

It depends on your definition of affordable. A Prius or Civic Hybrid can be had new for around $22,000. The average new vehicle selling price is around $28,500 today. Either of those hybrids pack an absolutely amazing amount of technology into completely usable cars for much less money than the average new car.

The only hybrid I would consider to be a bad idea was the 2 seat Honda Insight that sold for $20,000+ and couldn't get out of it's own way.

[BlackAttackGA]

You have to think too that a hybrid car's main purpose is to be more environmentally friendly, not to neccessarily save people money. Most environmental friendly products do cost more and sometimes save money over time, but that's really not the point. The point is to lower emissions and fuel consumption (however, since our world is so self-centered, the environment matters less than how much we pay for gas).

[Mike Jung]

Originally Posted by BlackAttackGA

You have to think too that a hybrid car's main purpose is to be more environmentally friendly, not to neccessarily save people money. Most environmental friendly products do cost more and sometimes save money over time, but that's really not the point. The point is to lower emissions and fuel consumption (however, since our world is so self-centered, the environment matters less than how much we pay for gas).

I know this is a litte of topic, but...

Well, have a look at my last 2 emissions tail pipe tests.

Post up your Ontario Drive Clean Emission Test results

I don't think my GA's emissions is that bad (?).

So you don't have to have a Hybrid to have lower emissions.

Plus will the Hybrid's lower emissions be offset by the manufacturing the Hybrid's batteries, & the enivironment's cost for batteries disposal/recycling in the end ?

[lone_wolf025]

Originally Posted by Mike Jung

Plus will the Hybrid's lower emissions be offset by the manufacturing the Hybrid's batteries, & the enivironment's cost for batteries disposal/recycling in the end ?

I think this is the real question that any potential buyer of a hybrid who is looking for the "green earth" aspect of owning one should ask. I don't think its right to pitch a vehicle as "friendly to the environment" when the only "friendly" part about it is the amount of fuel it burns during it's lifecycle when not including the manufacturing and recycling costs.