What Are the Economic Impacts of Hybrid Cars?
"FedEx Express is proud to be the first company to make a long-term market commitment to develop and utilize hybrid electric delivery trucks."
~ David J. Bronczek, FedEx President
Purchase & Maintenance Costs
As with any new technology, prices are normally higher to start and eventually level off. Remember fax machines, VCRs and cell phones?  Curiously though, hybrid cars are not priced off the charts.
The Honda Civic hybrid priced at around $20,000 is comparable to the highest end Civic non-hybrid and about $6,000 higher than the lowest end Civic. The manufacturers claim they are losing money on their first round of HEVs but have had to yield to government pressure to reduce pollutants and consumer pressure for better mileage. They're taking a loss initially hoping to make it back in the long run.
The Toyota Prius starts at $20,810 and gets 51 mpg highway. Comparable Toyotas are the Camry, which starts at $18,560 and gets 33 mpg highway and the Corolla starting at $14,195 and getting 40 mpg highway.
If you add up what you'll save in gas, you may or may not make up the difference in the higher cost of the hybrid car over the typical five-year period most people keep cars. However, many are choosing to drive hybrids more out of environmental concerns than to save money. True, you'll save money on gas day-to-day, so once you've invested in the cost of the car, your expenses for running your vehicle will be reduced.
If you want to see how much money you will save on gas, check out the fuel cost calculator at www.AllAboutHybridCars.com. As an example, if you drive 10,000 miles/year and get 20 mpg now, expect to get 50 mpg in your hybrid, and you're paying $2.30/gallon, if you kept your car for five years, your savings would be $3,450. That's pretty substantial!
As more hybrids become available, once you've decided it's the way to go, you'll want to compare HEVs to other HEVs rather than non-hybrids. In comparing the Prius to the Civic hybrid, for example, they come out neck in neck in size, price and overall features - except that the Prius boasts 60/51 mpg (city/hwy) to the Civic's 48/47 mpg (city/hwy). The Insight at $21,380 is 57/56 (city/hwy), but it is expected to disappear by 2005. These figures vary, so don't hold them as gospel. Road conditions and drivers' habits affect fuel economy - driving the speed limit and avoiding quick starts and stops helps improve mileage overall.
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