Is the Chevy Volt or the Toyota Prius plug-in hybrid more cost-effective?
So, you're in the market for a plug-in vehicle. Because your new car will be needed for occasional trips beyond 100 miles, a new battery electric vehicle, such as the Nissan Leaf, is simply insufficient for year needs. Whatever your reasons, a plug-in electric simply doesn't work.
Thus, you've boiled your desires down to two plug-in hybrids: the Chevy Volt and the Toyota Prius plug-in hybrid. And, you're going to let cost-effectiveness make your decision.
So, which plug-in hybrid is best for you?
Fortunately, John Gartner of Pike Research recently crunched the numbers on these two plug-in hybrids. Up to 14 miles, there isn't much difference between these vehicles since both will use mostly electric power. However, for drives between 14 to 70 miles between charges, the Chevy Volt offers a cheaper ride, while the Toyota Prius plug-in offers a cheaper ride beyond 70 miles.
Of course, that doesn't tell the whole story. If both vehicles go 70 miles, for example, each costs $4.75 in energy costs. Thus, the difference in costs between these two vehicles is never really the great. The only time one vehicle would really offer a significant cost advantage is for trips of at least several hundred miles.
Thus, one might assume that up-front costs are the critical difference maker. However, while the Chevy Volt costs $39,995 compared to the Prius plug-ins's $32,760, the Volt qualifies for a much bigger federal tax credit. Thus, after you subtract the $7500 tax credit from the Volt and the $2500 tax credit from the plug-in Prius, the difference is only $2000.
So, doesn't that make the decision much easier?
In perfect conditions, the Volt will be more cost-effective, but never by that much and it would still take several years to achieve a return on the extra costs of the Volt. Of course, anytime a Volt driver goes further than 70 miles, then it starts losing any savings. Take a long weekend trip 1 once a month, and the Prius might push back ahead. Cross a few states and plug-in Prius could dominate savings.
And that brings up a legitimate concern. If you almost never drive more than 70 miles, why buy a Volt or plug-in Prius when a Nissan Leaf would be more cost-effective, at least as long as tax credits are part of the mix?
Nevertheless, it's hard to argue a real strong cost-effective advantage for either the Volt or the plug-in Prius over the other based on average consumer mileage. While the average daily commute breaks down to 40 miles, actual real world mileage is more complex. For instance many studies have shown that the average daily commute -- round trip -- is more like 20-something miles or less, with the rest being made up on longer trips.
But, we all know that plug-in purchases aren't dominated by cost-effectiveness, particularly when it comes to early adopters. As a result, many plug-in buyers will gravitate toward the Volt because of its greater EV range, even if it's less cost-effective.
Likewise, those more focused on CO2 emissions might gravitate more to the plug-in Prius, which studies from the likes of Carnegie Melon, Oxford, etc. suggest is typically more environmentally friendly.
Moreover, other factors, such as performance, could push some plug-in hybrid buyers towards the Volt, while passenger room and cargo space might push others to the Prius.
Ultimately, there are numerous conditions where each plug-in hybrid offers better cost-effectiveness, at least as long as tax credits are part of the story. Beyond that, each plug-in hybrid offers some unique capabilities and amenities.
The bottom line
Before buying a plug-in, think very seriously about your average yearly mileage, especially if cost-effectiveness is your goal. Additionally, couple that with your ability to charge.
After that, if you can't discern an obvious advantage of one plug-in versus the other, then get out there and test drive both. Again, each of these plug-in hybrids offers some unique capabilities and amenities, and it might just be one of those intangibles -- in terms of cost-effectiveness -- that closes the deal.
Source: Pike Research via AutoObserver
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