I put a pen to paper and did some calculations about the new Honda Accord V6 hybrid.
The new hybrid should cost around $3500 more than a regular Accord. Adjusting for the cost of local gas prices, it would take a new buyer 75,000 miles of use before improved gas mileage would cover and make up for the extra $3500.
Should gas prices rise or fall then the number would change but Im guestimating that a new buyer would need to drive his new Hybrid Accord at least 70K - 80K miles before improved gas mileage would pay for the higher cost of the vehicle. Of course, Hybrids might very well require increased service and repair costs so most likely a hybrid buyer would need to drive their vehicle 100K miles for improved gas mileage to help them justify the increased expense.
Of course, Hybrid Accord owners have to deal with other indignities like losing 20% of the trunk space and lack of a spare tire. Then there is the time value of money. $3500 invested might return $5000 or more in value by the time the 100K plateu was reached. An investor that doubled their money over the same timespan that 100K was reached would probably be better off buying a cheaper car and investing the excess. Buying on credit or with a loan would seem to benefit the buyer of the lower priced car as the $3500 extra would be the last $3500 paid on the vehicle and would hold a lot of interest and some risk of being repoed.
The civic already gets good enough gas mileage that the extra mileage of a hybrid makes even less sense.
Accord lovers would seem to need 100K of use and value to justify the expense of a hybrid and would only benefit financially if they drove 200K miles with a worry and repair free vehicle.
Of course being environmentally friendly is a worthwhile goal but you have to wonder how many people drive their cars for 200K miles and would actually benefit from the improved gas mileage.
Still, I will applaud the brave souls that try.
Happy Motoring All,
Bugshu
The new hybrid should cost around $3500 more than a regular Accord. Adjusting for the cost of local gas prices, it would take a new buyer 75,000 miles of use before improved gas mileage would cover and make up for the extra $3500.
Should gas prices rise or fall then the number would change but Im guestimating that a new buyer would need to drive his new Hybrid Accord at least 70K - 80K miles before improved gas mileage would pay for the higher cost of the vehicle. Of course, Hybrids might very well require increased service and repair costs so most likely a hybrid buyer would need to drive their vehicle 100K miles for improved gas mileage to help them justify the increased expense.
Of course, Hybrid Accord owners have to deal with other indignities like losing 20% of the trunk space and lack of a spare tire. Then there is the time value of money. $3500 invested might return $5000 or more in value by the time the 100K plateu was reached. An investor that doubled their money over the same timespan that 100K was reached would probably be better off buying a cheaper car and investing the excess. Buying on credit or with a loan would seem to benefit the buyer of the lower priced car as the $3500 extra would be the last $3500 paid on the vehicle and would hold a lot of interest and some risk of being repoed.
The civic already gets good enough gas mileage that the extra mileage of a hybrid makes even less sense.
Accord lovers would seem to need 100K of use and value to justify the expense of a hybrid and would only benefit financially if they drove 200K miles with a worry and repair free vehicle.
Of course being environmentally friendly is a worthwhile goal but you have to wonder how many people drive their cars for 200K miles and would actually benefit from the improved gas mileage.
Still, I will applaud the brave souls that try.
Happy Motoring All,
Bugshu
