Aside from your home, an automobile may be one of the largest purchases you make, so of course, you want to get the best value for your money. If you're trying to decide between a hybrid automobile and a conventional gasoline engine automobile, it makes sense to look at the cost differences between the two. You'll want to know not only how much you'll spend to acquire the car, but the total cost of the vehicle over time.
Purchase Price
CNN Money reports that hybrid vehicles cost $2,000 to $3,000 more than comparable non-hybrid vehicles. Hybrids tend to include more features in their price. If you're looking for a stripped-down vehicle without a lot of bells and whistles, the cost difference between a gasoline car and a hybrid will probably be even greater.
Operating Costs
The biggest everyday cost of operating a car is in the fuel you put in the tank to operate that car. Hybrids use less fuel because they rely on an electric motor to operate the car part of the time. Hybrids tend to get better mileage in the city than on the highway, so how you drive will effect how much you save. A four-wheel drive Ford Escape gets 20 miles per gallon of gasoline in the city and 26 miles per gallon on the highway, according to Fuel Economy.gov. A hybrid four-wheel drive Escape gets 30 miles per gallon in the city and 27 miles per gallon on the highway.
Maintenance
Both hybrid vehicles and gasoline vehicles need regular oil changes, new tires and other maintenance. The only variable is the batteries--hybrid vehicles use large battery packs to provide the electrical power to run the car when the gasoline engine isn't on. These battery packs will eventually need to be replaced, although hybrid technology is new enough, and manufacturers offer lengthy warranties, so there are no firm figures on replacement costs. When Dr. John Taylor, Tania Duffie, Davis Fleming and Thomas Privott of the mathematics department of the University of North Carolina studied the cost of owning a hybrid vehicle, they estimated battery replacement at $6,000 for parts and labor, after 10 years of battery life. Ford and Toyota warranty their hybrid batteries for 10 years, according to CNN Money, so replacement before then would be covered under the warranty.
Resale
CNN Money reports that, with the exception of the Toyota Prius, most hybrid vehicles don't hold their resale value any better than comparable non-hybrid vehicles. When Kelly Blue Book, which publishes the industry market guide to automobile research values, awarded its top 10 cars for holding their resale value for 2010, only one hybrid vehicle, the Toyota Prius, made the list.
Rebates & Credits
The federal government, as well as several state governments, offer tax credits of rebates for hybrid car owners. These tax incentives can help offset the increased purchase price of buying a hybrid. The federal government offers an income tax credit of up to $3,400 for hybrid vehicles purchased after December 31, 2005. Some areas offer other incentives to hybrid vehicle owners, such as use of special commuter lanes, or preferred parking. These items can also lower the cost of owning a hybrid vehicle.
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