Vancouver Sun July 13th 2006:
It's cheaper to purchase and
operate a new hybrid-electric vehicle than a comparable gas-powered model
when you look at
all the costs incurred
over a five-year period.
A study - which considered
purchase price, financing costs, fuel costs and
a provincial tax credit - said that in six out of
seven vehicles examined,
it was cheaper over the long term to buy a hybrid.
The only exception was the Ford Escape hybrid,
which worked out to be
$1,957 more expensive to buy and operate for five
years than its gas-fed equivalent.
Skyrocketing fuel costs have
created greater savings for hybrid buyers, noting
an association study last year, assuming
fuel costs of 95 cents
a litre, found hybrid vehicles were slightly more expensive
to buy and operate over five years than
conventional vehicles.
But with the latest study assuming fuel costs of $1.15
a litre, it becomes cheaper to operate a hybrid.
The study found the total
cost of buying a new Toyota Highlander hybrid is
about C$50,000, compared with C$44,800 for a
conventional model. But
when you consider an estimated C$3,565 in fuel savings
over five years and a lower financing rate of
5.75 per cent available
at some financial institutions for hybrids (compared
with 8.75 per cent for other vehicles), the total cost
of buying and operating
the hybrid for five years is C$844 less than its gasoline-engine
counterpart
- C$63,426 compared with
C$64,270.
Hait said car manufacturers
have lowered the price differential between hybrid
and conventional vehicles in the past year
and noted B.C. buyers
get a $2,000 provincial tax break when they buy a new
hybrid.
Canadian auto industry analyst
Richard Cooper agrees hybrid vehicles can save
buyers money by lowering their fuel bills,
but noted maintenance
costs are a great unknown.
The study assumes maintenance costs for hybrid and conventional vehicles will be the same.
"I don't think there's
enough of a track record yet to really see what the
maintenance costs are going to be like
on some of these
vehicles," he said. "At this stage, it doesn't look
like there's a significant difference, but we
just don't have enough
information yet."
Cooper, Canadian executive
director for J.D. Power & Associates, said hybrid
vehicle sales represent about one per cent
of the 1.6 million vehicles
sold in Canada every year, but predicts that figure
will rise to four per cent by 2010 as hybrids
become more of a mainstream
alternative.
"Not everybody is going to
be driving these things, but I sense there has been
a bit of a tipping point recently with consumers
being more accepting
of them," he said. "Hybrids are no longer seen as strange
vehicles driven only by weird and wacky
environmentalists."
The association study found
the Lexus Hybrid SUV offered the greatest saving
over five years, at $4,463, followed by the
Honda Civic ($3,241),
Honda Accord ($2,456), Toyota Camry ($2,084), Toyota
Prius ($1,071) and Toyota Highlander ($844).
An association survey found
78 per cent of its members would likely buy hybrid
vehicles if their sticker price was the same as
conventional vehicles.