- Posted 29 Apr
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With the highest gas prices in history and ever growing environmental concerns, hybrid vehicles have become a popular option for many. But how do you decipher the difference between facts and good marketing when trying to figure out if a hybrid is right for you? Especially is your main concern is saving money. As car loan specialist, we have put together a few things to consider before purchasing a hybrid vehicle.
Why Drive a Hybrid
As mentioned above, gas prices and concerns about our environment are a constant reminder that we must be smarter consumers to protect not only the planet we call home, but also our finances. There has been a big push for public transportation in the last couple years, but unfortunately that is not an option for many who require the convenience of one’s own vehicle. Therefore hybrid vehicles have gained mass popularity in the last 5 years.
These cars have created hallmarks such as start/stop systems and regenerative braking systems which are being adopted by more and more automakers. Their low emissions and need for less fuel are more environmentally friendly and with most major car companies having a hybrid option, the choices now range above and beyond the Toyota Prius.
How Much Money Will Driving a Hybrid Save?
Automakers will have you thinking that hybrids are worth the investment because they ultimately save you money over the long run. There is actually some controversy on this.
Many say this depends how much you drive, how you drive and how long you own your car. There is no denying that the hybrid cars are very fuel efficient and have a low purchase price, for example you can get a brand new Prius for around $32,000.
And studies have reported that after 5 years of ownership at 15,000 miles in a hybrid car will result in an average fuel costs savings of $3371. So it seems you’ll get more for your money the longer you continue to put miles on it.
Do The Numbers Truly Add Up to Savings?
These cars may be fuel efficient but does that efficiently translate to saving you money overall? Many experts will say ‘no’ or at least ‘not for a long time’. An example of this is the Toyota Prius. While it averages 50mpg, which is no slouch compared to other vehicles, the advanced technology also commands premium over conventional gasoline.
And what about car repair costs? Well, regular maintenance is actually about the same or lower than conventional gas engine vehicles. What you need to be wary of is if something goes wrong with the hybrid system and your warranty has run out, as these systems are extremely pricy to repair or replace.
Money vs. Environment
While the debate whether hybrids are actually a huge money saver or not, it’s inarguable that they are in fact better for the environment, which is strong argument alone for many. As well as fewer trips to the pump! It just depends on what your personal concerns and needs are.
Speak to our friendly team at Australian Credit and Finance for all your car loan needs!