Still Shopping? With Big Rebates, Hybrids and Diesels Can Be Attractive
By John O'Dell July 31, 2009If C4C Comes Back, Tech Premium For Many Could Be Offset; Manufacturer Rebates Would Do Same
By John O'Dell, Senior Editor
Got a gas guzzler that would qualify under the cash for clunkers program for a federal credit toward a new, more efficient car or truck? (That's if we still have a cash for clunkers program when the dust settles from Thursday's reveation that the programs's initial funding apparently has run dry.)
The situation's up in the air right now, but if you are in the mood to keep doing research, or perhaps have had the car-buying impulse jump-started and have decided to take the plunge - clunker incentive or no - this is a good time to look at hybrids and diesels.
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2009 Camry Hybrid has lowest technology premium, $239.
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If Congress keeps cash for clunkers going, or automakers step up with bigger incentives of their own to keep the market moving, the credits - ranging in the C4C program from $3,500 to $4,500 depending on the fuel economy of the new car or truck - could help make a previously unaffordable hybrid or clean diesel a lot more compatible with your budget.
A $3,500 voucher or dealer rebate, for instance, would erase the premium on a 29.1 mpg Saturn Aura hybrid (versus the gasoline Aura) and leave you with $130 for a celebratory dinner - or to cover part of the new car license fee, your choice).
With a $4,500 trade-in credit, you could buy the hybrid version of the Chevrolet Tahoe for the same price you'd have paid for the standard version without a credit. Or you could justify a Prius if your pre-clunker budget had only allowed you to think Insight.
Edmunds' True Market Value data shows that the so-called technology premium that makes diesels and hybrids cost more than their conventional gasoline-burning counterparts ranges from a low $239 for a 2009 Toyota Camry Hybrid to an out-of-this-world $26,038 for the ultra-luxurious '09 Lexus LS 600h L.
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Mecedes-Benz E-Class diesel has hefty $10,122 premium over standard E350.
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Toss out those extremes and the premiums for hybrids range from $2,320 for the '09 Chevrolet Malibu Hybrid to $7,493 for the Chevrolet Silverado two-mode hybrid pickup. In the diesel arena, the premium spreads from a negative $2,745 for the Mecedes-Benz GL 320 CDI sport 'ute to a hefty $10,122 for the Mercedes-Benz E320 BlueTec sedan.
(Yes, the diesel Gl 320 SUV from Mercedes can be had for nearly $3,000 less than the gas model, thanks to the federal clean car tax credit; there's a small savings of $136 for the R320 diesel for the same reason. Because their base prices exceed $45,000, however, neither model, however would qualify under the cash for clunkers program - if it is still alive.)
Mostly, though, the premiums run in the $3,000 to $5,000 range, a bite out of the pocketbook that a cash for clunkers rebate or equal-sized dealer rebate could pretty
much heal. And federal or dealers dollars would certainly take a lot of the sting out of the purchase price for those models with a premium of $4,500 or more.
Edmunds analysts determined the premiums by comparing the True Market Value of each of the 21 hybrids and 9 diesels in the 2009 on sale now with the TMV of their closest gasoline-burning counterpart.
Edmunds' proprietary TMV, which always includes manufacturers' incentives to dealers, was adjusted for rebates to consumers and for federal "clean car" tax credits for hybirds and diesels, when applicable.
Here's a look at the vehicles (in alphabetic order), their premiums, TMVs, and combined highway-city fuel economy ratings and the conventional models to which we've compared them (all with automatic transmissions).
Note that four of the hybrids and six of the diesels couldn't be bought using a clunker trade-in credit because their MSRP exceeds the $45,000 ceiling the feds have put on the cost of a car or truck eligible for the program. We include them, however, to give you a complete listing of all your options.
The four hybrids are the Cadillac Escalade, GMC Yukon and Lexus GS 450h and LS 600h L. The six diesels are the Audi Q7, BMW X5 35d and the Mercedes-Benz E320 BlueTec, ML320 BlueTec, GL320 CDI and R320 BlueTec. All 10 vehicles are 2009 models.
Because the Toyota Prius has no direct counterpart in the conventional gasoline lineup, and because it is so populat, we compareditso several of the models agianst which it is most often cross-shopped.
HYBRIDS
(Manufacturer, model, premium, fuel economy, TMV; Counterpart, fuel economy, TMV)
[* Denotes model not eligible for clunker voucher]
*Cadillac Escalade, $6,973, 20.4 mpg, $66,785; Escalade 6.2-liter, 14.4 mpg, $59,812.
Chevrolet Malibu, $2,320, 29.1 mpg, $22,395; Malibu 2.4-liter, 25 mpg, $20,075.
Chevrolet Silverado Crew Cab, $7,108, 21.4 mpg, $34,611; Silverado XFE Crew Cab 5.3 liter, 17.2 mpg, $27,503.
Chevrolet Tahoe, $4,005, 21.4 mpg, $44,412; Tahoe LT2 5.3-liter, 16.2 mpg, $40,407.
Ford Escape, $5,401, 32.6 mpg, $25,555; Escape XLT 2.5-liter, 23 mpg, $20,154.
Ford Fusion (2010 model), $4,175, 38.6 mpg, $26,295; 2010 Fusion SEL 2.5-liter, 25.3 mpg, $22,120.
GMC Sierra Crew Cab, $7,493, 21.4 mpg, $35,059; Sierra XFE Crew Cab 5.3 liter, 17.2 mpg, $27,566.
*GMC Yukon, $4,875, 21.4 mpg, $46,832; Yukon SLT2 5.3-liter, 16.2 mpg, $41,975.
Honda Civic, $5,438, 42.1 mpg, $23,9; Civic LX 1.8 liter, 29 mpg, $17,691.
*Lexus GS 450h, $2,114, 23.3 mpg, $51,523; GS 460, 19.6 mpg, $49,409.
*Lexus LS 600h L, $26,038, 20.9 mpg, $98;057; LS 460 L 4.6-liter, 18.5 mpg, $72,019.
Lexus RX 450h (2010 model), $5,844, 27.5 mpg, $40,373; 2010 RX 350, 20.6 mpg, $34,529.
Mazda Tribute, $4,744, 32.6 mpg, $26,578; Tribute Grand Touring 2.5-liter, 23 mpg, $21,834.
Mercury Mariner, $6,651, 32.6 mpg, $26,056; Mariner 2.5-liter, 23 mpg, $19,405.
Nissan Altima, $3,943, 34.1 mpg, $23,138; Altima 2.5S, 26 mpg, $19,195.
Saturn Aura, $3,370, 29.1 mpg, $23,995; Aura XE 2.4-liter, 25.9 mpg, $20,625.
Saturn Vue, $4,580, 27.7 mpg, $25,885; Vue XE 2.4-liter, 21.6 mpg, $21,275.
Toyota Camry, $289, 33.4 mpg, $22,779; Camry XLE 2.4-liter, 24.6 mpg, $22,490.
Toyota Camry (2010 model), $477, 33.4 mpg, $25,368; Camry XLE 2.5-liter, 25.6 mpg, $24,891.
Toyota Prius, $2,698, 46.6 mpg, $21,723; Camry LE 2.4-liter, 24.6 mpg, $19,025.
Toyota Prius (2010 model), $4,030, 49.6 mpg, $24,220; 2010 Honda Insight, 41.3 mpg, $20190.
Toyota Prius (2010 model II), $1,489, 49.6 mpg, $22,740; Camry XLE 2.5-liter, 25.6 mpg, $24,891.
Toyota Prius (2010 model II), $6,102, 49.6 mpg, $22,740; Corolla LE 1.8-liter, 29.1 mpg, $16,648.
DIESELS
*Audi Q7 DI Premium, $4,234, 19.9 mpg, $49,353; Q7 3.6 Premium, 16.2 mpg, $45,110.
BMW 335d, $2,558, 26.0 mpg, $42,106; 335i, 20.1 mpg, $38,648.
*BMW X5 35d, $1,732, 20.9 mpg, $$47,889; X5 30i, 17.6 mpg, $46,157.
*Mercedes-Benz E320 BlueTec, $10,122, 26.3 mpg, $52,900; E350, 19.6 mpg, $42,775.
*Mercedes-Benz ML320 BlueTec, $508, 20.3 mpg, $45,605; ML350, 16.9 mpg, $45,097.
*Mercedes-Benz GL320 CDI, -$2,745, 19.3 mpg, $54,006; GL350, 14.9 mpg, $56,751.
*Mercedes-Benz R320 BlueTec, -$136, 20.3 mpg, $45,482; R350 4Matic, 16.6 mpg, $45,618.
Volkswagen Jetta TDI Loyal, $2,220, 33.1 mpg, $22,629; SE 2.5-liter, 24 mpg, $20,409.
Volkswagen Touareg TDI Loyal, $5,448, 19.9 mpg, $40,260; VR6 3.6-liter, 16.2 mpg, $34,812.
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