There has been a lot of talk recently in the general press about the 'fact' that hybrid vehicles are a bad investment. By this they mean that the premium cost of a hybrid vehicle for most people will never be offset by the gas savings from better fuel economy. These stories may actually be having an impact on sales of new hybrid vehicles, but they really are missing several points.
1. The data is suspect. The fuel economy any particular driver will obtain with a hybrid depends significantly on their driving style and how motivated they are to drive economically. Annual mileage is another key variable that is hard to generalise. And most of these calculations ,aka assumptions about the future resale value of hybrids that have little basis in fact or experience.
2. The comparisons are invalid. Few people are deciding between, say, a Ford Escape and a Ford Escape Hybrid. Most people go into a car-buying situation with an idea of their budget (which most of us end up exceeding!), a style of vehicle and desired features in mind and our own prejudices about brands and technologies. So for an extra few thousand dollars you could drive a hybrid OR get the plush leather, DVD and V8. You'll pay for what you value!
3. Saving money short term on a capital / cash-flow basis takes no account of the value of using 50% less fossil fuels, creating 50% fewer greenhouse emissions and less than 10% of the pollutants of a regular engined car.
Consumers will decide what they value. At the moment, sadly, most consumers seem to value a few dollars more.
Peter H
While Prius has become embedded in the public mind as a hybrid, it has very polarising looks, as does the Insight. As more conventional looking hybrids start coming out at respectable prices (like the Civic Hybrid and Hybrid Camry) sales will pick up, gas going to $3.25 shortly won't hurt sales either. They should start reporting just the facts and stop trying to create sensation, all it does is hurt good products and people.
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