Hybrid cars still fetch a premium and few will recoup this extra cost over five years of use, new research from the British Columbia Automobile Association (BCAA) reveals.
According to the Canadian auto association, twelve years after hybrids were first introduced into the North American market, car buyers are still waiting to see the kind of price reductions that were predicted to occur as hybrids gained in popularity and market share.
Despite technological advancements over the years, increased sales and model competition, car buyers are still paying more for hybrid models still cost more to run and operate, the BCAA’s annual Hybrid Cost and Saving analysis reveals.
The research found that several hybrid models came close to their conventionally-fuelled cousins when costs where compared over five years, but only one-the Mercedes S400 hybrid sedan-was found to be less expensive to own and operate compared to the non-hybrid option.
The study placed 16 hybrid models available to buy in British Columbia and their conventional equivalents side-by-side and compared the purchase, financing and fuel costs over a five year period. The analysis assumed a constant gas price of $1.17 per litre and a driving distance of 20,000 kms a year.
The results show that the hybrids which come closest in cost to their conventional counterparts in purchase and operating costs are all the Toyota models (Prius, Camry and Highlander Hybrid), all the Honda models (Insight and Civic Hybrid) and the Lexus HS250h.
Over a five year period, the hybrids that are the least costly to own and operate are the Honda Insight ($38,326), Toyota Prius ($40,324), and Honda Civic Hybrid ($42,664).
From an environmental perspective, the hybrids which offered the greatest greenhouse gas (GHG) emission advantage over their gas-powered equivalents were found to be the Toyota Prius (with 55 per cent fewer GHG emissions) and the Ford Fusion Hybrid (38 per cent fewer GHG emissions) and the Honda Civic Hybrid (37 per cent fewer GHG emissions).
The association explains however that a lot of the lack of hybrid savings is a result in the changes in tax incentives in the region:
“With the elimination first of the federal tax incentive and now the provincial tax rebate, it appears it’s still going to be a while before hybrids offer a cost advantage over standard vehicles,” explains Trace Acres, BCAA’s director of corporate communications and government relations.
“What we are seeing however, is manufacturers starting to offer price breaks for things like cash sales, so an environmentally conscious consumer may still be able to make a hybrid purchase work financially by shopping around,” she adds.
