Consumer
Reports and Hybrid Cars: What You Need To Know
What's
the word on hybrids?
Consumer Report's Annual Auto Issue is one of the most
important sources for unbiased ratings and reviews of
automobiles. So, what can we learn from Consumer Reports
when it comes to hybrid
cars.?
First, we learned that the Toyota
Highlander hybrid is the best SUV over $30,000 and
that the Toyota
Prius hybrid is the Best Green Vehicle.
Second, we learned that the Prius is the Most Satisfying
vehicle according to owners. A whopping 95% of Prius
owners would buy another Prius (more).
Third, we learned that hybrid vehicles have thus far
proven to be extremely reliable. In fact, the Prius and
the Honda
Civic hybrid topped CR's rankings of Most reliable,
with just 4% of owners reporting problems. In addition,
the Highlander hybrid, Lexus
RX400h hybrid and the Accord
hybrid also did very well in reliability.
Of course, the long term reliability of hybrids is still a
question, a question that can only be answered once enough
hybrids have been on the road for more than a decade.
Ultimately, the reliability of hybrids is extremely
important as it is the factor in determining the
overall value of hybrids, which brings us to our final
point.
Fourth, are hybrid vehicles worth the cost?
According to Consumer Reports, only two hybrids can save
you money after the first five years: the Prius and the
Civic hybrid. Of course, once the capped tax credits for
hybrids expire, these vehicles will then cost more than
their conventional counterparts, well, maybe.
The article, Hybrids:
Save gas, lose money, notes that "six hybrid
gasoline/electric vehicles, will lose 2 percent to 3
percent more in value over five years of ownership than
otherwise identical non-hybrid vehicles." While the
Prius can save $406 after 5 years and the Civic hybrid
saves $317, the rest of the hybrids lose money after five
years: Ford
Escape Hybrid ($1,883), Honda Accord Hybrid ($4,263),
Lexus RX400h ($4,171) and Toyota Highlander Hybrid
($5,508).
Of course, as in life, few things are ever black and
white.
To start, there is no "identical non-hybrid
vehicle" to compare to the Prius. If the Prius were
simply a hybrid Corolla, it would be called the Corolla
hybrid. Quite simply, the Prius is a unique vehicle and
when you consider performance, reliability and customer
satisfaction, the Prius is a unique, awesome vehicle.
As for the rest of the hybrid vehicle segment, it is true
that cost is an important concern. Still, for those that
care, can you really put a cost on foreign oil dependency
or a cleaner environment? Sometimes doing the right thing
is neither the cheapest nor easiest thing to do.
Furthermore, the Consumer Reports study makes several
important assumptions. For example, it assumes that your
auto insurance will cost more. Overtime; however, this
might not be true, especially when you consider that some
insurance providers have already offered discounts to
hybrid drivers.
CR also assumes extra financing costs for hybrids.
Already, Ford has begun to offer incentives and better
financing deals on its hybrid vehicles, so this 'cost'
might not remain an extra cost.
The most important assumption affecting the costs of
hybrids; however, is extra depreciation, which CR claims
could range from $2,900 to 6,300 after 5 years. These are
huge numbers that cannot, at this point in time, be backed
by fact.
For example, if hybrid batteries generally last the life
of these vehicles, which Toyota engineers claim is quite
possible, then these numbers will be horribly wrong.
Additionally, as more hybrids are built, hybrid battery
costs will come down.
Moreover, it could turn out that replacing the battery
packs of older hybrids could make hybrids twice as fuel
efficient as before with new battery technology, such as
lithium batteries. Not only would this reverse
depreciation costs, but it would double fuel savings
costs.
In 10 years, it could turn out that replacing the hybrid
battery pack on an old hybrid actually results in a better
hybrid than when new. Imagine the effect this would have
on resale value.
Additionally, "Hybrid supporter and Prius owner James
Bell, publisher of the automotive guide IntelliChoice,
recently sold his two-year-old Prius for just $4,000 less
than he originally paid for it -- a remarkably low rate of
depreciation." (more)
So, hybrid depreciation is a complete wild card.
Furthermore, "We really like hybrids in terms of
their overall performance" and environmental
benefits, says Doug Love, a spokesman for Consumers Union.
In conclusion, the CR study does demonstrates that hybrid
vehicles do pose some risk when it comes to long term
value; however, the CR study largely assumes the worst
case scenario. If hybrid batteries are very reliable
and/or new battery technology could cost-effectively make
old hybrids twice as fuel efficient, then hybrids could
end up as long term bargains.
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