Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

Which Hybrids Have the Lowest Cost of Ownership?

After five years and 15,000 miles of driving per year, are there any hybrids that actually have a lower cost of ownership than their gas-engine counterparts? One unexpected vehicle takes the prize.

March 2012, by - Also by this author

©iStockphoto.com/Firstsignal
©iStockphoto.com/Firstsignal

Fleets are as environmentally conscious as they’ve ever been, because they have more of an opportunity to curb larger amounts of greenhouse gases and smog-forming pollutants than the single consumer. In turn, a fleet’s costs to “go green” are even greater than those of the Prius-buying family — and in business, any environmental initiative must be sustainable to the bottom line.  

With this in mind, the lifecycle cost experts at Vincentric put together a cost-of-ownership analysis of hybrid models. Last November, Vincentric analyzed 27 models from 2011 and 2012 model years using data from its October 2011 database update.

The Vincentric data measures eight cost elements for more than 2,000 vehicle configurations, including depreciation, financing, fees and taxes, fuel, insurance, maintenance, opportunity cost and repairs. Each month Vincentric re-compiles its database to take into account current market conditions.

For the hybrid analysis, Vincentric assumed 15,000 annual miles driven over five years. The hybrid report uses U.S. averages, although states can be selected for a more specific analysis. Fuel prices are based on a weighted average over the previous five months.

The Changing Equation
The hybrid/internal combustion engine (ICE) cost differential is an ever-changing equation. Wild swings in fuel prices are a major factor, as are available tax credits and rebates, which expired for all hybrid models on Jan. 1, 2011. New government incentives concentrate on plug-in hybrids and electric cars.

In looking at Business Fleet Magazine’s hybrid analyses using Vincentric data over the years, starting in the 2006 model year, hybrids have not closed the pricing gap with their traditional ICE-powered counterparts. In this latest analysis of 27 hybrid models, Vincentric’s data shows the average price premium for a hybrid is $8,494. Mitigated by an average fuel cost savings of $3,505 and taking into account other costs, the average cost of ownership for hybrids is $4,643 more than the straight gas models.

Nonetheless, four hybrids have total costs of ownership that are lower than their ICE cousins (see the “Hybrid Total Cost Differentials” chart).

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

FleetFAQ

Fleet Management And Leasing

Merchants Experts will answer your questions and challenges

View All
Sponsored by

Electric vehicle typically refers to an all-electric vehicle, but is also occasionally used in reference to plug-in-hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs)

Read more

Blog

Market Trends

Mike Antich
Avoid Repeating Past Inefficiencies: Build the Truck to Match Today’s Application

By Mike Antich
I asked one fleet manager how he spec’ed replacement trucks for his fleet application. He related that many years earlier an OEM rep spec’ed out his trucks and he has been using the same formula ever since. While this may work in some cases, specifications should be defined by today’s fleet application to ensure the replacement truck is designed to accommodate current operational requirements rather than trying to make your operation conform to trucks spec’ed for yesteryear’s requirements.

Conduct an Efficiency Audit to Eliminate Waste in Your Fleet Budget

By Mike Antich

View All

Driving Notes

Amy Winter-Hercher
2017 Subaru Impreza

By Amy Winter-Hercher
The redesigned 2017 Impreza has been built on Subaru’s new platform that improves stability and reduces road noise and vibration. The fuel-efficient, all-wheel-drive Impreza makes for a good commuter vehicle — available in either a sedan or hatchback.

2017 Mazda CX-5

By Eric Gandarilla

View All

Nobody Asked Me, But...

Sherb Brown
Yes Virginia, There is Depreciation

By Sherb Brown
Depreciation is a necessary evil in our industry. Knowing your risks and knowing your OEM partners won’t make depreciation go away but it can make it more manageable.

Are You a Fleet Manager or Are You Just Managing a Fleet

By Sherb Brown

View All

Auto Focus

Chris Brown
Trump and Regulations: An Alt-Fuel View

By Chris Brown
With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

By Chris Brown

View All

STORE

Up Next

More From The World's Largest Fleet Publisher