Payoff for Efficient Cars Takes Years

Payoff for Efficient Cars Takes Years

By NICK BUNKLEY

April 4, 2012

New York TImes 

People around the world are looking at different car alternatives as the prices of gas go up. The main cars people are starting to look at hybrid and electric cars, but what the people do not realize when they by these cars is how long it takes before they start saving money. All the different car brands are bringing out their version eco-friendly and efficient car, which uses technology that puts the car prices, quiet high. But data from TrueCar.com says that this new technology does not necessarily save you money. This is expect for two hybrid cars the Toyota Prius and the Lincoln MKZ, the other hybrid cars have the added cost in the fuel-efficient technology which gives it those added years to start saving money, over a comparable conventional fuel-combustion engine. This is compared to today’s fuel prices that are at $4 per gallon in the U.S and even if prices were to climb to $5 per gallon it would still take a decent amount of time. For people to start to save money on the newly bought eco-efficient car fuel prices would have to rise to $8 a gallon over 6 years (average time a person owns a car) before the car would be paid off and start saving money. The hybrid car market has grown 60 percent this year but sill only holds 3 percent of the total car market. For these hybrid cars to become mainstream the companies are going to have to wait for oil prices rise and the demand for them to rise, or they find a way for the cost of the car to be cheaper. The current pay off time ranges from two years to six and half years. A lot of people who buy these cars often do not do the math before they by these cars; they think higher mileage the better they will come out in the end. Were some people are just buying these hybrid cars to do something better for the environment, not worrying about the costs. So in the end hybrid cars are not going to save you as much money as you think, but will help the environment. 

This article really lets you have a good look at the real outcomes in buying a hybrid car and the time in which you are really going to start saving money. With the current prices of oil the only benefit I see in buying a hybrid car is to be eco-friendly, and play your part. If you are really looking to save money in buying a hybrid instead of a conventional fuel-combustion car than you should look to buy a Toyota Prius or the Lincoln MKZ. Personally I wouldn’t buy a hybrid car yet, but within the next few years it will be worth it when fuel prices grow to a much higher price.


http://www.nytimes.com/2012/04/05/business/energy-environment/for-hybrid-and-electric-cars-to-pay-off-owners-must-wait.html?_r=1&pagewanted=1

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