Are we there yet? The economics of going hybrid
August 9, 2011
Indy Star – Regular Saturday readers probably can surmise that I’m a proponent of advanced powertrains. I think the Chevy Volt is an incredible achievement, appreciate the efficiency of the Nissan Leaf and give props to the affect Toyota’s Prius had on the auto industry.
Owners love them, but none are especially cheap. The question remains: Are hybrids really worth it?
Hybrid options
While all of the major automakers have a hybrid in their lineup, several are achieving outstanding fuel economy without complicated batteries and motors.
Chevrolet’s Cruze Eco achieves 28/42 mpg city/hwy. The redesigned 2012 Ford Focus SFE and smaller Fiesta manage 40 mpg hwy, as does the hot-selling Hyundai Elantra. VW Golfs with diesel engines go 30/42 mpg city/hwy. These are roomy cars that cruise happily at road speed.
On the flipside of the energy equation are the benchmark Toyota Prius hybrid that delivers 51/48 mpg city/hwy and the Honda Insight hybrid that achieves 40/43 mpg. A Chevy Volt slips by with 93 mpg-equivalent, but that’s an electric ghost of a different tale.
Other gas-powered sippers are coming. Toyota’s Scion brand is launching the iQ, a four-seat car about a foot longer than a Smart. Chevrolet will replace its Aveo sub-compact with the Detroit-built Sonic this fall. Even large cars like the 2012 Chevy Impala and Ford Taurus will achieve over 30 mpg hwy.
General Motors CEO Dan Akerson recently announced his company will launch a diesel-powered Chevy Cruze in 2013 that should top 45 mpg hwy.
Hybrid and the pocket book
Let’s assume you drive 15,000 miles per year and gas hovers around $3.50 per gallon. A Cruze Eco, Focus SFE or Elantra would cost you just under $1,600/year to fuel. Gas-powered micro cars like the Smart or Scion iQ drop it to about $1,400. The Chevy Volt in gas mode and Honda CR-Z sport hybrid are comparable to these.
Hybrids and electrics generally do better. A Toyota Prius will consume under $1,100/year in fuel while the Honda Insight hybrid uses just under $1,300. Electric cars, according to EPA and power company estimates, will consume about $570 in electricity.
If you purchase a Cruze Eco, Elantra or Focus instead of a base Prius, you’ll save about $5,000 ($18,500 vs. $23,500). Buy the Cruze instead of a Volt trims around $14,000 (after rebates). The Honda Insight, starting under $19,000, is priced comparably with mainstream gas-powered compacts.
Given all of this, hybrids don’t pay for themselves in pure economical terms. It would take 10 years in fuel savings to justify the current price difference between normal compacts and a base Prius. If never driven in gas mode (unlikely), the payback on a Volt is about 14 years.
The Honda Insight is the only hybrid considered that will save cash from day one.
In conclusion
Overall, you probably won’t save money by purchasing a hybrid. However, like driving a Corvette or Ford F-150 Raptor, vehicle purchases often are about emotion as much as practicality. People tend to determine a monthly budget, then buy a car they desire. Maybe they lease a Chevy Volt instead of a Buick Regal Turbo? Or, they choose a loaded Prius instead of an Audi A3?
After that choice, the Volt or Prius definitely will save money on fuel day after day.
For reasons of image and “coolness,” few people outside of us nerdy journalists actually compare a Prius to a Corolla or a Volt to a Cruze. Drivers just don’t think that way. Each of us decides by our own values and emotions what is “worth it.” Price is only one factor.
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