10.8 years – Maybe the hybrid premium is an investment, not a cost
Prius provides real bang for the buck according to some studies.
At least for some hybrid cars
Americans are holding onto their cars longer, an average of 10.8 years, according to the latest data. That means old gas-guzzlers are becoming even bigger gas-guzzlers, not to mention more costly to fuel.
And maybe that means hybrid cars are a better deal than many might believe, and that the hybrid premium really is more of an investment rather than a cost.
For example, a recent Forbes piece on the cars with the most bang for the buck after 5 years of ownership includes both the Toyota Camry hybrid and the Toyota Prius. If these hybrids provide some of the best bang for the buck after 5 years, what about 10 years?
According to Consumer Reports, for instance, even a 10 year old Prius is one of the better values in terms of used cars — even if the battery has to be replaced thanks to a healthy supply of used battery packs. Thus, if the Prius is a great deal after 5 years, it must be a really great deal after 10 years.
Of course, many hybrids have much longer payback periods, but there is no doubt that many hybrids can be a real value compared to conventional gas-powered vehicles if you’re an average vehicle owner.
Obviously, even long term savings still won’t be enough for most consumers to pay that hybrid premium up front, but if gas prices start permanently residing above $4.00 per gallon, it seems some hybrids could offer exceptional long term value — at least as far as autos go.
It’s not really a difficult calculation. Many folks finance for 5 years.
Many of them will look at their monthly car payment ….AND their monthly fuel expenses.
If the car payment plus the fuel costs of a hybrid beat the ICE – many folks will make the change.
If not – you then are into the realm of why someone would buy a car that costs more a month than another car. People do this but in doing this.. there is a realization that you’re committing yourself to higher monthly expenses.
I would submit that for many folks who don’t have big incomes.. that this is what drives their decisions.