How to Save Money by Choosing a Hybrid Car

July 18, 2013

Currently, there are many different hybrid car models in the United States. These include SUVs, compacts, pickup trucks, and crossovers. For you to save money, you have to choose a hybrid car that is economical. This is done by making a comparison between the initial cost and the savings on fuel.

Initial Price

The basis for making a comparison is the retail price suggested by the car manufacturer. When purchasing, you have to compare the standard model with the hybrid model in terms of cost. For example, a standard model costs $38,375, while a similar model having a hybrid engine costs $43,935. This means that the price of the hybrid model exceeds that of the standard model by $5,560.

Fuel Economy

Every customer or buyer has the expectation of saving gasoline when buying a hybrid car. This is because hybrids partly use electricity. For example, a standard model approximately covers 21 miles per gallon of fuel. The same model with a hybrid engine covers 30 miles per gallon of fuel. Therefore, if you buy a hybrid, you need to keep it for many years so that the savings that you make on gas would compensate for the high initial cost of the car.

Governmental Rebates

People who bought hybrid cars between the year 2005 and 2010 were eligible for approximately $3,400 in terms of governmental tax credits. The credit amount was determined by the number of hybrid sales that an automaker made. If the hybrid sales exceeded 60,000, tax credits were reduced for subsequent buyers by 50%. Later on, the credit was reduced by an additional 25%, until it eventually disappeared. Therefore, if you want to save money when buying hybrids, you should probably wait to purchase your car when the tax credits have been reduced.

Gas Savings

If you want to compute the actual amount of money saved on fuel over a given year, you need to make a comparison between a hybrid car’s operating cost and the cost of operating a standard model. According to a report summary submitted by the Transportation Department in the United Sates, an average American driver would drive for 15,291 miles per year. When you divide this figure by the 21 miles per gallon that a standard model would cover, you get a total of 728 gasoline gallons annually. Using the same formula for the hybrid car, you will realize that you need a total of 218 gasoline gallons per year. From this, it is clear that you can choose to save money by buying a hybrid car and using it for at least eight years.

 

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