"Hybrids: Don't buy the hype" by Peter Veldes-Dapena, on CNN/Money, with the assistance of calculations by Edmunds.com. Veldes-Dapena opined, "With gasoline prices now around $3 a gallon, you might think it makes a lot of sense that hybrid cars are hot sellers. Actually, it doesn't -- at least not a lot of financial sense. They may make a social statement you're interested in, but if you want to save money because of rising gas prices, you're heading down the wrong road, at least for now." Veldes-Dapena used the following example: "A hybrid Honda Accord costs about $3,800 more than the comparable non-hybrid version, including purchase, maintenance and insurance costs. Over five years, assuming 15,000 miles of driving per year, you'll make up that cost in gasoline money if the price of gas goes up immediately to $9.20 a gallon and averages that for the whole period."

 

Does that include the $2,000 tax break you are getting this year if you buy a hybrid by December?

http://www.fueleconomy.gov/feg/tax_afv.shtml#cleanfuel

And I'd think that you'd probably break even a little quicker if you do a lot of city driving (stop-n-go) instead of highway driving, since that is where you really save gas. So I don't know how meaningful that 15,000 mile yardstick used for the calculation really is.

 

Use less oil and we may start to clean up the air some. Gas for the S is not cheap but at least we get decent milage. Just think if all the SUV's averaged 25 - 27 mpg.

 

On a recent trip down I-95 I was AMAZED at the MASS civil disobedienence as I was doing 80+ MPH just to keep up with traffic. The good news is that at those speeds with a couple of V-Tec shifts pulling away from the EZ-Pass Toll Booths I got 27.1 MPG over 208 miles

 

So true Matt, I just averaged 25 on my last tank, and you know how our traffic is! Just think, if things had been different, you'd have a hybrid!

 

Hybrids also have expensive (and hazardous) energy storage devices. It's no free lunch. Still, I'm all for using less gas -- period. I'm sure we'll see LOTS of new hybrids in the coming years. I just wish they were focusing on fuel economy rather than simply adding power to already overpowered cars (e.g., Lexus rx300h).

Now, if we want to start talking Hydrogen, the picture really becomes complicated. Honda's ready to go with fuel cells, but we have no way to produce Hydrogen in the quantities needed.

 

Very true, no distribution network for hydrogen, although with electricty and water hydrogen is easy enough.

Hydrogen just shifts fuel used, I mean there are not "hydrogen" trees (even if there where we are totally limited by the energy coming from the sun). I understand we have a lot more coal in the U.S. than anything else, but I am consulting for a power company and the emissions are not pretty. Also creating enough power plants to replace our dependance on oil is not going to happen, there is a HUGE "not in my backyard" menality when it comes to making new power plants. It is almost impossible to create "green" power plant (at a new location) and creating "brown" power plants are limited by space at the existing sites.

 

I wonder if the hybrids will have a better depreciation curve that might help you get your money out of it on the back end. Is there any depreciation data yet on the civic vs civic hybrid or accord vs accord hybrid? You may pay $4k more to get into it, but if you save $2k in gas and get $3k more when you sell, you come out a little better.

 

Well, based strictly on demand, the Prius is selling for more money than new in some states!

That's not a valid long-term argument, but I agree it's something to consider, Slithr.

 

Also remember that is $3500 more MSRP, because of the demand, you have to pay full retail (or more). You can also get discounts on other less popular models. So the total difference might be quite a bit MORE than $3500.

Like anything, the technology curve will eventually make this a non-decision.