How to Make Your Hybrid Vehicle Purchase Pay Off
A lot of consumers are concerned about the price of hybrid electric vehicles, wondering if and when their vehicle purchases will ever pay off.
That's an important concern as an HEV can carry a price premium of up to $5,000 over a comparatively equipped gasoline-powered model.
Getting paid back for your investment usually takes many years and for most consumers that won't happen at all.
However, there are some factors you should explore that can help make your HEV purchase a sound one.
1.
Buy a Lincoln MKZ Hybrid.
If you are in the market for a luxury hybrid, there are a few models out there including offerings from Lexus, Infiniti and Lincoln.
The Lincoln MKZ Hybrid has been on the market since the 2011 model year and has always had the unique distinction of carrying no price premium.
Instead of paying extra for a car that is priced from about $36,000, you can get the MKZ Hybrid for no additional cost.
Moreover, this model is rated at 45 mpg, higher than any other luxury HEV on the market.
2.
Hope for higher gas prices.
What, are you nuts?! Hope for higher gas prices? Well, it is true that if gas prices are low, then enjoying a payback on your hybrid purchase will take much longer than when gas prices are low.
As long as gas stays near $4 per gallon, the 10 mpg you save over a comparative gasoline-powered can save you several hundred dollars per year.
For instance, a gas sedan that gets 30 mpg and is drive 15,000 miles per year would consume 500 gallons of fuel annually, at a cost of $2,000.
A comparable hybrid model that gets 40 mpg and is also driven 15,000 miles annually would consume 375 gallons at a cost of $1,500.
That $500 in annual savings would mean that your $3,500 price premium is recovered after seven years of ownership.
3.
Keep your HEV longer.
In the second point, we alluded to the pay back period taking several years.
The big reason why consumers will usually not receive a return on their investment is because they buy an HEV and keep it for only 3, 4 or 5 years.
Other than the MKZ Hybrid, you absolutely must consider keeping your HEV for about 10 years before expecting a return on your investment.
Of course, if gas prices go higher and hybrid manufacturing costs drop, then the pay back time will narrow significantly.
4.
Sell it at a premium.
Your HEV pay back may not take place until you sell your vehicle.
And there is no guarantee that your hybrid will carry a decent price premium over its gas-powered equivalent, but the possibility is there.
For instance, a 2011 Ford Fusion Hybrid sedan with 25,000 mile on the odometer is valued at $19,190 according to Kelley Blue Book.
The comparable SEL sedan is valued at $16,734, for a difference of $2,400.
You would need to subtract that $2,400 from the price differential between the gas and hybrid models to see if you came out ahead.
Hybrid Considerations Note that many hybrid models are equal to higher trim levels of its gas-powered sibling.
Your price premium may appear to be well over $5,000, but that elevated cost may include mid-level or higher amenities.
That's an important concern as an HEV can carry a price premium of up to $5,000 over a comparatively equipped gasoline-powered model.
Getting paid back for your investment usually takes many years and for most consumers that won't happen at all.
However, there are some factors you should explore that can help make your HEV purchase a sound one.
1.
Buy a Lincoln MKZ Hybrid.
If you are in the market for a luxury hybrid, there are a few models out there including offerings from Lexus, Infiniti and Lincoln.
The Lincoln MKZ Hybrid has been on the market since the 2011 model year and has always had the unique distinction of carrying no price premium.
Instead of paying extra for a car that is priced from about $36,000, you can get the MKZ Hybrid for no additional cost.
Moreover, this model is rated at 45 mpg, higher than any other luxury HEV on the market.
2.
Hope for higher gas prices.
What, are you nuts?! Hope for higher gas prices? Well, it is true that if gas prices are low, then enjoying a payback on your hybrid purchase will take much longer than when gas prices are low.
As long as gas stays near $4 per gallon, the 10 mpg you save over a comparative gasoline-powered can save you several hundred dollars per year.
For instance, a gas sedan that gets 30 mpg and is drive 15,000 miles per year would consume 500 gallons of fuel annually, at a cost of $2,000.
A comparable hybrid model that gets 40 mpg and is also driven 15,000 miles annually would consume 375 gallons at a cost of $1,500.
That $500 in annual savings would mean that your $3,500 price premium is recovered after seven years of ownership.
3.
Keep your HEV longer.
In the second point, we alluded to the pay back period taking several years.
The big reason why consumers will usually not receive a return on their investment is because they buy an HEV and keep it for only 3, 4 or 5 years.
Other than the MKZ Hybrid, you absolutely must consider keeping your HEV for about 10 years before expecting a return on your investment.
Of course, if gas prices go higher and hybrid manufacturing costs drop, then the pay back time will narrow significantly.
4.
Sell it at a premium.
Your HEV pay back may not take place until you sell your vehicle.
And there is no guarantee that your hybrid will carry a decent price premium over its gas-powered equivalent, but the possibility is there.
For instance, a 2011 Ford Fusion Hybrid sedan with 25,000 mile on the odometer is valued at $19,190 according to Kelley Blue Book.
The comparable SEL sedan is valued at $16,734, for a difference of $2,400.
You would need to subtract that $2,400 from the price differential between the gas and hybrid models to see if you came out ahead.
Hybrid Considerations Note that many hybrid models are equal to higher trim levels of its gas-powered sibling.
Your price premium may appear to be well over $5,000, but that elevated cost may include mid-level or higher amenities.