Hybrid And Diesel Cars Save Money, New Survey Says
One of the biggest things holding back the sale of more fuel efficient vehicles like hybrids and clean diesels is that they have a higher initial cost premium. Also, many have charged that these vehicles, hybrids in particular, have such high maintenance costs that any savings on fuel are immediately canceled out when you get your repair bill. Well, according to a new study by IntelliChoice.com, all those concerns are unwarranted.
Here’s how the study worked: IntelliChoice.com took a look at the numbers for 51 hybrid and clean diesel vehicles on the market in 2009 and compared them to the statistics for gasoline versions. The comparison had five criteria: maintenance costs, fuel costs, resale value, insurance costs, and initial taxes and licensing fees. The timeline was five years with a total 70,000 miles driven. The results provide an overall cost of ownership. And the verdict? 34 of the 51 hybrids or clean diesels have a lower overall cost than their gasoline counterparts (if you take out the current government tax credits, that number does drop to 23, but still). Also, should gas prices get to a $4 per gallon price, 41 of the clean vehicles are more cost efficient than the gasoline versions.
So what’s the best buy out there for you cost- and environmentally-conscious drivers? The Volkswagen Jetta TDI with a manual transmission. The Jetta TDI has a price tag of $22,270, which is $2,070 more than the cost of a gasoline-powered Jetta SE (just for clarification, there is a base level Jetta starting at $17,515, but the SE model is the most comparable to the TDI in equipment layout). Over the course of five years, the cost of ownership for a TDI is $6,420 less than the cost of a Jetta SE (if you opt for an automatic transmission, the savings drop slightly to $6,210). That makes for a net savings (the five-year cost savings minus the initial premium) of $4,350. Bear in mind that this figure does include a $1,300 government tax credit for buying a fuel efficient vehicle, but even if that wasn’t included, the cost outlay would still be favorable.
If you want to see the full study and check how your favorite clean diesel or hybrid stacked up, Intellichoice.com has kindly made a PDF version available here
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