Fluctuating gas prices, expiring tax credits and economic instability have many consumers wondering if purchasing a hybrid or diesel vehicle is the most cost-effective choice in today's market. An updated study by Edmunds.com compares the payback period of the newest hybrid and diesel vehicles compared to their gasoline vehicle counterparts.
"As a general rule, we found that diesels are more affordable than hybrids, taking into account the vehicles' prices, tax credits and fuel usage," notes Edmunds' AutoObserver.com Senior Editor Bill Visnic, who participated in the panel "The Green Car of the Future" with representatives from BMW, Toyota and The New York Times, this evening at the Japan Society in New York.
Set forth below are the annual gas savings and payback periods for the latest hybrid and diesel models as compared to their gasoline-driven counterparts:
Sample Hybrid Comparisons:
Sample Diesel Comparisons:
This study assumed the vehicles were sold at the Edmunds.com True Market Value price, were driven 15,000 miles per year and achieved the Environmental Protection Agency's recorded mileage for combined city and highway driving. Average gas prices were assumed to be $3.09 per gallon of premium unleaded, $2.81 per gallon of regular unleaded and $2.95 per gallon of diesel.
The federal tax credit and current incentives were applied when appropriate. Please note that Ford and Mercury hybrid vehicle tax credits will be eliminated on April 1, 2010, but consumers who order one before March 31 qualify for the credit. Tax credits for Honda and Toyota hybrids have already been phased out.
