GAS CRISIS: Hybrids vs. Fuel Efficiency


7/11/2008

Fort Worth, TX – – Many consumers have purchased hybrid cars for environmental reasons. Others, however, have been thinking of purchasing hybrids for their improved gas mileage. This latter group has to weigh the relative advantage of paying a “premium” price for the more expensive hybrid which was cheaper to operate versus purchasing a less expensive car which got poorer gas mileage. Consumers began to think in terms of how long it would take to pay off the “premium” connected with purchasing a hybrid car. For example, the regular version of the Toyota Camry sells for approximately $3,000 less that the hybrid Camry, meaning that it could take more than five years to reach a break-even point where fuel savings offset the premium paid for the hybrid model. When gas prices were lower, it was harder to justify the payment of the premium to purchase a hybrid. With gas prices now at $4 per gallon, the time required to “payoff the premium” has been reduced, and consumers are taking a new look at the hybrids.

Despite the shrinking payoff period, consumers will still need to take a close look at the expense of purchasing and operating a hybrid if environmental considerations are ignored. The hybrid versions of certain autos do not enjoy that great an advantage in mileage over their regular versions. Even with $4 per gallon gas, the payoff period on several hybrids will still be lengthy. The hybrid version of one luxury car has a premium of about $20,000 compared to its non-hybrid version, experiences only slightly better mileage, and has an estimated payoff period of almost a century. Consumers need to evaluate their driving needs when considering a hybrid. A smaller, fuel-efficient regular car may make more financial sense than a hybrid.

In the meantime there are a few simple things that you can do to help cut down on fuel costs. Properly inflated tires will help you get better gas mileage. Slow down and drive smoothly. Use regular gas whenever possible; using premium fuel in a car designed to run on regular will not improve its performance. In running your errands, plan to take one long trip rather than several short trips. A final encouraging note for Texans—using your car’s air conditioner does not appreciably hurt mileage.