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Here's an interesting post that confirms my own suspicion. Buying a hybrid car is NOT a good investment.
White first looked at trading in his Subaru for a Prius, and found that at roughly $3 per gallon for gas, he wouldn’t recover his financing costs. Joe figured that at his annual mileage, he’d save about $746 a year in fuel costs, but it would take too long to recover the premium he’d pay for the hybrid.
Next he looked at the hypothetical situation of someone without a car looking to buy either a Honda Civic or the Prius. In this case, the fuel savings were roughly $506 per year, versus a purchase price difference of about $8,000. Without even considering cost-of-money issues, it would take nearly 16 years just to break even.
With the current tax deduction of $2,000 converting to a $2,000 tax credit January 1, which decreases every year thereafter, the government subsidies don’t make the switch economically feasible, either.
The bottom line? Unless gas prices go a lot higher, or the government increases hybrid subsidies, or both, buying a hybrid probably won’t save you money.
Posted by The Vorlon at October 2, 2005 6:46 PMI just got a Prius. I didn't buy it to save money, I bought it because I believe that the US should reduce its dependence on foreign oil. We buy the majority of our oil from countries whose ideals and governments are not in line with our own. We are making despotic and even terror-supporting governments rich. I am now getting around 45 mpg, on a long commute, and about 60 in the citys.
I may not be saving money, and I, as a CATO and Heritage club member, am certainly not your typical "GREEN" earth loving hippie, but I do NOT mind putting my money where my beliefs are.
By the way, the rebate is now $3000 for a Prius, but I don't expect that to last forever. Still, at a price of $24,600 for a full-featured, mid size car, I think I got a good deal. I love my car.
Brian, also a Vineland resident
Posted by: brian at October 9, 2005 7:38 AM