...models that promise better mileage through new technologies does not necessarily save money
Except for two hybrids, the Prius and Lincoln MKZ, ...the added cost of the fuel-efficient technologies is so high that it would take the average driver many years .. to save money over comparable new models with conventional internal-combustion engines.
The Prius and Lincoln MKZ are likely to produce overall savings within two years versus similar-size gas-powered cars from the same brand, but other hybrids, despite ratings 8 to 12 miles per gallon better than conventional models, will cost more to buy and drive for at least five years.
If gas cost $5 a gallon, the TrueCar data estimates that the payback period for a hybrid Ford Fusion over the conventional Fusion would be six and a half years, compared with eight and a half years at $4.
At $6 a gallon, the hybrid Toyota Camry, Hyundai Sonata and Kia Optima are likely to generate savings within four years.
So why do some buyers pay more for advanced technology that might not save them money?
- Many never do the math,
- Saving fuel and doing something better for the environment as their ultimate goals, regardless of cost.
- “People want to have good fuel economy because if they have poor fuel economy they might look stupid.”
- Hybrids have a big leg up on electric cars, which are far more expensive.
The Volt, which cost nearly $40,000 before a $7,500 federal tax credit, could take up to 27 years to pay off versus a Chevrolet Cruze, assuming it was regularly driven farther than its battery-only range allows. The payback time could drop to about eight years if gas cost $5 a gallon and the driver remained exclusively on battery power.
“If you provide consumers what they want, they won’t mind paying a premium to get it,” Mr. Toprak said.