Hybrid Car Economics

Hybrid car economics are calculated using the net price of the car, savings on gasoline, and any other items that have to do with the price of having such a car, such as maintenance and repairs.

The variables that have to do with your calculation include:

current cost of gas at the pump (U.S. dollars per gallon)
gas mileage of alternative vehicle (miles per gallon)
gas mileage with hybrid car (miles per gallon)
monthly distance driven (miles per month)

If you are thinking of keeping the car for 5 years before buying a new car, you should calculate the variables based on a 5 year horizon.

If savings for driving a hybrid car are more for the 5 year period than the difference that you possibly pay more to drive a hybrid, then in economic terms, the cheaper alternative is the traditional gas powered vehicle.

Many, when choosing a hybrid, include an amount of 'green equity', which is the amount of money they are willing to pay more over a traditional car for a hybrid to save the planet.


From Hybrid Car Economics page to Hybrid Cars Guide index