Hybrid Vehicles Not Best Value Over Time, Edmunds.com Finds
June 25, 2008
SANTA MONICA, Calif. -- High gas prices, the housing crisis and general economic
uncertainty are motivating consumers to look for the least expensive cars to own and operate. But a new study by Edmunds.com shows that many compact and subcompact vehicles are actually better choices than hybrids for consumers looking to save money.
The Chevrolet Aveo topped the list of best values based on Edmunds' True Cost to Own data, which accounts for total vehicle costs over a five-year period. No hybrids made the top 10 list.
"When consumers think about cars that will save them money, hybrids are typically top of mind because of their fuel efficiency," said Jesse Toprak, Edmunds.com executive director of Industry Analysis. "But when you take a look at the real-world costs of car ownership, you realize that many subcompact and compact cars are actually a much better value proposition."
The data further suggests that only one hybrid, the Honda Civic Hybrid, would break into the top 10 least expensive vehicles to own if gas prices were to increase to $5 per gallon, which some analysts are predicted they will by Labor Day. The Civic Hybrid was the only hybrid to break the top 20 list at current gas prices.
Unlike some other analyses that look only at fuel economy and sticker price, including one released by Consumer Reports magazine last week, Edmunds' True Cost to Own incorporates projected model-specific average vehicle ownership costs, consisting of depreciation, financing, taxes, fees, insurance premiums, fuel costs, maintenance and repairs.
When all of the factors are considered, some popular vehicles look considerably less appealing on a cost-per-mile basis than their fuel economy would suggest.
| Cheapest Vehicles to Own | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Vehicle | Cost-Per-Mile at $4.06 Per Gallon | Rank | Cost-Per-Mile at $5 Per Gallon | Rank | Cost-Per-Mile at $6 Per Gallon | Rank | |||
| 2008 Chevrolet Aveo 5 Special Value 4dr Hatchback (1.6L 4cyl 5M) |
$0.427 | 1 | $0.461 | 1 | $0.496 | 1 | |||
| 2008 Hyundai Accent GS 2dr Hatchback (1.6L 4cyl 5M) |
$0.430 | 2 | $0.463 | 2 | $0.498 | 2 | |||
| 2008 Honda Fit 4dr Hatchback (1.5L 4cyl 5M) |
$0.442 | 3 | $0.474 | 3 | $0.507 | 4 | |||
| 2008 Toyota Yaris 2dr Hatchback (1.5L 4cyl 5M) |
$0.445 | 4 | $0.475 | 4 | $0.507 | 3 | |||
| 2008 Honda Civic DX 4dr Sedan (1.8L 4cyl 5M) |
$0.455 | 5 | $0.488 | 5 | $0.522 | 5 | |||
| 2008 Nissan Versa 1.8 S 4dr Hatchback (1.8L 4cyl 6M) |
$0.458 | 6 | $0.492 | 6 | $0.529 | 7 | |||
| 2008 Mazda MAZDA3 i Sport 4dr Sedan (2.0L 4cyl 5M) |
$0.463 | 7 | $0.498 | 8 | $0.535 | 11 | |||
| 2008 Kia Rio 4dr Sedan (1.6L 4cyl 5M) |
$0.464 | 8 | $0.497 | 7 | $0.533 | 9 | |||
| 2008 Scion xB 4dr Wagon (2.4L 4cyl 5M) |
$0.467 | 9 | $0.506 | 12 | $0.548 | 17 | |||
| 2008 Toyota Corolla CE 4dr Sedan (1.8L 4cyl 5M) |
$0.468 | 10 | $0.498 | 9 | $0.530 | 8 | |||
Source: Edmunds.com
The study evaluated the True Cost to Own of vehicles assuming gas prices of $4.06 (the national average on June 23), $5 and $6. With gas prices at $4.06 per gallon, the standard model Toyota Prius costs owners $0.50 per mile -- ranking 33rd among all vehicles. The top-seeded Chevrolet Aveo, on the other hand, costs $0.42 per mile, resulting in annual savings of $1,200 to consumers who choose the Aveo over a Prius. In the event gas prices rise to $5 or $6 per gallon, the Aveo remains in the tops spot and the Prius moves to positions 25 and 17 respectively.
| Hybrid Rankings in Cost to Own | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Vehicle | Cost-Per-Mile at $4.06 Per Gallon | Rank | Cost-Per-Mile at $5 Per Gallon | Rank | Cost-Per-Mile at $6 Per Gallon | Rank | |||
| 2008 Honda Civic Hybrid Hybrid 4dr Sedan (1.3L 4cyl gas/electric hybrid CVT) |
$0.476 | 14 | $0.499 | 10 | $0.524 | 6 | |||
| 2008 Toyota Prius Standard 4dr Hatchback (1.5L 4cyl gas/electric hybrid CVT) |
$0.503 | 34 | $0.525 | 26 | $0.548 | 18 | |||
| 2008 Nissan Altima Hybrid 4dr Sedan (2.5L 4cyl gas/electric hybrid CVT) |
$0.540 | 66 | $0.569 | 59 | $0.601 | 54 | |||
| 2008 Chevrolet Malibu Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid 4A) |
$0.563 | 81 | $0.598 | 78 | $0.635 | 76 | |||
| 2008 Ford Escape Hybrid 4dr SUV (2.3L 4cyl gas/electric hybrid CVT) |
$0.583 | 94 | $0.615 | 86 | $0.649 | 80 | |||
| 2008 Mercury Mariner Hybrid 4dr SUV (2.3L 4cyl gas/electric hybrid CVT) |
$0.596 | 102 | $0.628 | 98 | $0.662 | 89 | |||
| 2008 Toyota Camry Hybrid Hybrid 4dr Sedan (2.4L 4cyl gas/electric hybrid CVT) |
$0.630 | 134 | $0.660 | 118 | $0.691 | 106 | |||
| 2008 Mercury Mariner Hybrid 4dr SUV AWD (2.3L 4cyl gas/electric hybrid CVT) |
$0.634 | 136 | $0.670 | 133 | $0.709 | 122 | |||
| 2008 Toyota Highlander Hybrid 4dr SUV AWD (3.3L 6cyl gas/electric hybrid CVT) |
$0.725 | 190 | $0.764 | 190 | $0.806 | 182 | |||
| 2008 Lexus RX 400h 4dr SUV (3.3L 6cyl gas/electric hybrid CVT) |
$0.897 | 260 | $0.937 | 260 | $0.980 | 256 | |||
Source: Edmunds.com
"Many consumers neglect to consider total ownership costs when deciding which vehicle to buy," said Philip Reed, senior consumer advice editor for Edmunds.com. "Shoppers should look beyond fuel economy and consider the big picture when determining how a vehicle purchase will fit into their household budget."
Edmunds.com is the parent of AutoObserver.
Posted by Michelle Krebs at 7:20 AM under Analysis , Companies , Featured , GM , Technology , Toyota | Comments (2) | digg this | Seed Newsvine
If we take into consideration the size of the vehicle, the Toyota Prius comes out ahead of the comparably priced and sized Chevrolet Malibu. Except for the Honda Civic Hybrid, all of the other hybrids are larger than the conventional vehicles shown.
Posted by: fulcrumb | June 25, 2008 at 8:37 PM
I love this article - the "followers" that believe that Hybrid autos make any economic sense are delusional. Recently I asked my cousin who had just acquired a Prius what she would do when the batteries were no longer functioning: "I don't know." Following up I asked what it would cost to replace the battery pack - "I don't know." Another informed buyer! She is however enjoying driving the car and not having to gas up too often.
Posted by: stevedb | June 27, 2008 at 9:47 AM