Few Hybrids Show Cost Advantages: Vincentric
Vincentric publishes Canadian Hybrid Analysis.
According to Vincentric’s Canadian Hybrid Analysis, only 7 of 29 hybrid vehicles analyzed offer a lower total cost-of-ownership than their closest all-gasoline counterpart.
Among the 7 hybrids with lower ownership costs were the Lexus CT200h and the Lincoln MKZ Hybrid, which when compared to their all-gasoline counterparts had savings of over $11,500 and $4,000 respectively.
Other hybrids, from Ford, Honda, Hyundai, Lexus, and Toyota also showed cost advantages. The average price premium for a hybrid vehicle was $5,984 with average fuel cost savings of $3,986.
However, when the costs to own and operate all 29 hybrid vehicles was taken into account, the average five-year cost-of-ownership for hybrids was $2,976 more than their all-gasoline powered counterparts.
“The higher market prices of hybrids cause several cost factors to increase including finance, opportunity costs, fees and taxes, and depreciation,” said David Wurster, Vincentric President. “In some cases fuel cost savings can help offset these costs, but with fuel prices decreasing approximately 33% in the past six months, increased fuel efficiency alone is not always enough to keep hybrids competitive with their all-gas counterparts. However, with nearly a quarter of hybrids still offering cost advantages, it is important that consumers look at individual models to understand the cost implications of hybrid technology for that vehicle.”
To conduct the Canadian Hybrid Analysis, Vincentric measured total cost-of-ownership using eight different cost factors: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs. The analysis assumed vehicle ownership of five years and 25,000 annual kilometers of driving.