With fuel prices decreasing approximately 33% in the past six months, increased fuel efficiency alone is not always enough to keep hybrids competitive with their all-gas counterparts.
Bingham Farms, MI (PRWEB) January 08, 2015
Vincentric, the automotive industry leader in cost-of-ownership data, released its Canadian Hybrid Analysis today in which 7 of 29 hybrid vehicles analyzed were identified as having a lower total cost-of-ownership than their closest all-gasoline counterpart.
Among the 7 hybrids with lower ownership costs were the Lexus CT200h and the Lincoln MKZ Hybrid, which when compared to their all-gasoline counterparts had savings of over $11,500 and $4,000 respectively. Additional hybrids from Ford, Honda, Hyundai, Lexus, and Toyota also showed cost advantages. The average price premium for a hybrid vehicle was $5,984 with average fuel cost savings of $3,986. When the costs to own and operate all 29 hybrid vehicles were taken into account, the average five-year cost-of-ownership for hybrids was $2,976 more than their all-gasoline powered counterparts.
“The higher market prices of hybrids cause several cost factors to increase including finance, opportunity costs, fees and taxes, and depreciation. In some cases fuel cost savings can help offset these costs, but with fuel prices decreasing approximately 33% in the past six months, increased fuel efficiency alone is not always enough to keep hybrids competitive with their all-gas counterparts,” stated David Wurster, Vincentric President. "However, with nearly a quarter of hybrids still offering cost advantages, it is important that consumers look at individual models to understand the cost implications of hybrid technology for that vehicle."
To conduct the Canadian Hybrid Analysis, Vincentric measured total cost-of-ownership using eight different cost factors: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs. The analysis assumed vehicle ownership of five years and 25,000 annual kilometers of driving. Further information regarding this analysis and a chart showing results for all vehicles analyzed is available at http://www.vincentric.com.
Vincentric provides data, knowledge, and insight to the automotive industry by identifying and applying the many aspects of automotive ownership costs. Vincentric data is used by organizations throughout the world including Canadian firms such as General Motors Canada, Mercedes-Benz Canada, Ford Canada, Mitsubishi Motors Canada, Chrysler Canada, Nissan Canada, and Hydro-Québec as a means of providing automotive insight to their clientele. Vincentric, LLC is a privately held automotive data compilation and analysis firm headquartered in Bingham Farms, Michigan.