Report: 40% of Hybrids Cost Less to Own
The Lincoln MKZ Hybrid has lower ownership costs compared to its all-gasoline counterpart.
Vincentric’s 2013 Hybrid Analysis found that 13 of 33 hybrid vehicles have a lower total cost-of-ownership compared to their all-gasoline counterparts. Although this is an increase of two vehicles compared to the 11 cost-effective hybrids in the 2012 study, with the increased number of hybrids available, the percentage of financially cost-effective hybrids dropped from 44% to 39%.
According to Vincentric, the 13 hybrids with lower ownership costs included the Lexus CT200h and the Lincoln MKZ Hybrid — when compared to their all-gasoline counterparts had savings of over $6,300 and $4,700 respectfully. Additional hybrids from Acura, Audi, Ford, Honda, Hyundai, Lexus, Mercedes-Benz, Toyota and Volkswagen also showed cost advantages.
However, when the costs to own and operate all 33 hybrid vehicles were taken into account, the average five-year cost-of-ownership for hybrids was $1,338 more than their all-gasoline powered counterparts, assuming an annual mileage of 15,000, says Vincentric.
"As the prevalence of hybrid technology grows, our research shows that consumers are seeing additional vehicles that are financially advantageous when compared to their all-gasoline counterparts," said David Wurster, president of Vincentric. "However, because over half of the hybrids we evaluated have higher five-year ownership costs compared to their all-gasoline counterparts, it is important that consumers look at individual models to understand the cost implications of hybrid technology for that vehicle."
Vincentric measures eight cost elements for over 3,000 vehicles configurations per model year, 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 vehicle prices, resale values, fuel costs, finance rates and other economic and market factors to ensure up-to-date and accurate ownership costs.
For more information on the recent Hybrid Analysis, visit www.vincentric.com.