Break Even Miles to pay off that new Hybrid vehicle

Fatfreek

A day or so ago, wife and I watched this money expert on some morning show. She (the expert) seemed to advocate trading in your regular vehicle for one of those new hybrids in order to save money. It sounded like a good idea -- till I put a pencil to it. The following calculation shows that you need to drive the hybrid some 310,000 miles before you break even.

This link is to a calculating worksheet where you can plug in your own numbers to get your own results (let me know if you spot some calculation blunder and I will promptly fix it, calling it new light). There are 6 variables which you can play with when you do your own calculating. Your system requires Microsoft Excel in order to load it. If you don’t have that, below is a picture of what it looks like. [Sorry, you can’t edit the picture :) ] Len Miller.

Witness 007

Hybrids are very Pricey here...we get a government rebate of a couple thousand $ to convert to LPG gas which works out better at 60 cents a litre.

Robert7

Rumor has it the 2009 Prius may get mileage in the 70's with new technology and new batteries. If so, I bet the pay-off time is much more realistic.

Robert7

Ok, not so much. Even at 75 MPG, the break-even would be 138,000 miles!

I guess the argument is more philosophical, in that it creates less exhaust pollution, and lowers dependence on foreign oil...

Fatfreek

Robert: Rumor has it the 2009 Prius may get mileage in the 70's with new technology and new batteries. If so, I bet the pay-off time is much more realistic.

You don't need to guess about it -- that's risky betting. I just plugged in (and you can too) 70 mpg and (with existing data) learned you need to drive 147,000 miles for a break even.

Len

Fatfreek

Hi Robert. Our posts must've bumped into each other as they went thru cyberspace.

Yes, you're right about the pollution and dependence on foreign oil issues. That's if, a big if, you're driving mainly city and stop-and-go.

Len

BurnTheShips

Hybrids, at the current price, make no economic sense to the end user, as the spreadsheet above demonstrates. You can argue that you are ensuring a greener earth and that therefore you are willing to pay the price, but this is flat out wrong. Hybrid vehicles require more energy and parts in their construction, this offsets, in spades, any environmental "savings" in their operation.

Hybrid vehicles' overall energy costs exceed those of comparable non-hybrids

http://www.reason.org/commentaries/dalmia_20060719.shtml

BTS

John Doe

How does maintenance costs and resale values alter the equations?

I've wondered why diesels are not more popular. The VW TDI Jettas get 50 miles per gallon with a standard diesel engine.

BurnTheShips

I've wondered why diesels are not more popular. The VW TBI Jettas get 50 miles per gallon with a standard diesel engine.

Emissions regulations in the US strangle access to these excellent vehicles. Diesels produce higher particulate emissions etc than comparable gasoline powerplants. This requires special technology to reduce and the EPA keeps raising the bar and keeping good cars off of our roads.

I would love to own a TDI Jetta or something like it. Diesels are much more common in Europe.

BTS

SacrificialLoon

New Jetta diesels should be coming this fall, no golf/rabbit though.

Break Even Miles to pay off that new Hybrid vehicle

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