DE-BUNKING THE POPULAR HYBRID CRAZE
It may take longer then you think to break even on a Hybrid, maybe 25 years or so! Soaring gas prices now and in the future, the outlook on oil prices uncertain and more then likely to go up and up. What should the consumer expect when considering the option of buying a HYBRID vs. a conventional gas model?
With the recent rise in fuel prices across the board, including your neighborhood gas station. You might want to get rid of that old gas-guzzler and buy something that won’t eat you out of house and home.
Lets use an easy formula to give us the answer to the question: Hybrid or Not to Hybrid?
The easiest example available attempting to compare like model to like model, would be the Toyota Prius VS. The Toyota Corolla. The Toyota Prius MSRP is approximately $28,500 with the current extra dealer added mark-up of approximately $3,000.00 making it a grand total of $ 31,500. Now lets consider the Toyota Corolla with an approximate MSRP of about $18,000.00. Regardless what the EPA estimate is, it is always over stated when compared to the real or actual mileage you will get with your vehicle. A Toyota Prius gets and honest 40 to 45 miles per gallon. While it’s cousin the Toyota Corolla gets about 30 miles per gallon.
A basic calculation tells us we will spend $13,500 more on the Prius then the Corolla. With a realistic price of $4.50 per gallon for a bases of our fuel cost per gallon. Now we can do our homework and figure out the savings with the Prius vs. The Corolla. Using an average of 15,000 miles per year being generous and allowing the Prius 45 miles per gallon, your annual fuel cost will be about $1,500.00 per year.
Lets see what the annual cost of fuel for the Corolla will be. The Corolla gets about 30 miles per gallon. Using the same yearly average miles driven and the same $4.50 per gallon, the Corolla will cost you about $2025.00 per year or $525.00 per year more in gas purchases.
Lets go back to the cost difference of $13,500.00 greater for the Prius. Now divide the $525.00 per year additional fuel cost of the Corolla into the extra $13,500.00 cost of the Prius. Did we forget to tell you a replacement battery for the Prius, if it’s out of factory will cost you an additional $2985.00 plus tax and installation!
We had to do the math over several times to see if we made a mistake? But we didn’t, and came up with a whopping 25.7 years before we broke even with our purchase of the hard to find Toyota Prius Vs. The plentiful Toyota Corolla. The automobile industry is the purest example in today’s economy of supply side economics.
With the Prius in Short supply and higher demand, out pacing conventional gas models. We offer you a rational choice of what is better for your wallet: The Toyota Prius or the Toyota Corolla, the choice is yours but the math speaks volumes! 25.7 years to break even IF you don’t need a new battery.