The so-called "hybrid premium"

[rtn]

From a discussion at a blog, I came up with this regarding the mythical "$3000 hybrid premium". Thought you might find it interesting...

Regarding pricing of hybrids and the so-called premium, yes, they do cost a little more. But they are not out of reach for most new car buyers and in fact there isn't that much of a premium any more, especially with the tax credits.

Here are some comparisons of of similarly equipped models (which is a little complicated because the hybrids generally come with more features/options standard):

Honda Civic:
LX: $21,107
Hybrid: $23,893
Hybrid tax credit: $2100
Net hybrid cost: $21,793
Hybrid premium: $686

Toyota Camry:
XLE: $24,900
Hybrid: $26,200
Hybrid tax credit: $650
Net hybrid cost: $25,550
Hybrid premium: $650

Ford Escape:
XLT: $22,830
Hybrid: $25,740
Hybrid tax credit: $3000
Net hybrid cost: $22,740
Hybrid premium: -$90

Tax credits are as of April 2007. You can't do a fair comparison on the Prius because it only comes in hybrid. It's probably somewhere in between the Corolla and the Camry in terms of size, comfort and features, and so is the price. The Prius is virtually the same price as a similarly equipped Honda Civic Hybrid (before tax credits).

[FireEngineer]

I hope someone will do the "hemi premium" comparison. Then maybe I will finally figure out why someone doesn't mind paying the extra for the Hemi.

Wayne

[Delta Flyer]

This is a ballpark figure a writer thru out their years ago.

The questions to keep in mind: How much more does my hybrid cost over what I was going to get (or what I traded it in for)? How long will it take for my gas saving to make up the difference.

I tell most people about five years or 100,000 miles - your results will vary.

[rtn]

<div class='quotetop'>QUOTE(Delta Flyer @ Apr 9 2007, 12:33 PM) [snapback]420314[/snapback]</div>

The questions to keep in mind: How much more does my hybrid cost over what I was going to get (or what I traded it in for)? How long will it take for my gas saving to make up the difference.[/b]

In my case, I traded a $32K Ford Explorer Eddie Bauer V8 that got about 14MPG around town and about 20MPG on the highway. So the Prius cost less and costs less to drive. And I can still haul a lot of junk. So it's a win win! In fact, the Prius is the least expensive car we've bought in more than fifteen years.

(Disclaimer: I still have a Ford Freestyle for business/long road trips if I need to haul even more junk.)

[JimboK]

<div class='quotetop'>QUOTE(rtn @ Apr 9 2007, 12:24 PM) [snapback]420304[/snapback]</div>

You can't do a fair comparison on the Prius because it only comes in hybrid. It's probably somewhere in between the Corolla and the Camry in terms of size, comfort and features, and so is the price. [/b]

As a hatchback, the Matrix may be a better Toyota to compare with a Prius, though it's still not apples-to-apples.

[rtn]

<div class='quotetop'>QUOTE(JimboK @ Apr 9 2007, 12:45 PM) [snapback]420322[/snapback]</div>

As a hatchback, the Matrix may be a better Toyota to compare with a Prius, though it's still not apples-to-apples.
[/b]

True. We considered the Matrix (and the Nissan Versa) when we were shopping. If you do that comparison:

Matrix: $18,338
Prius: $23,370
Diff: $5032

I don't really consider that a "premium", though. The Prius seems like a "nicer" car, whatever that means. Like you say, it isn't apples-to-apples, since there isn't a hybrid Matrix and there isn't a gas-only Prius.

(I note the cargo capacity for the Matrix is listed at 53.2 cubic feet with the seats folded down, but they don't list it that way for the Prius. It just says 14.1 cf "luggage" capacity. Anybody know what it is with the seats folded down? For practical purposes, whatever it is it's a lot and it's all we need almost all the time.)

[mywhitenoise]

Uh, don't you guys know that the battery will need to be replaced in 3 years and costs $10,000? That's where the premium is. Not only that, it costs $3 a mile overall, didn't you read the Hummer vs. Prius article? You guys need to be informed.

[Highly ImPriused]

<div class='quotetop'>QUOTE(rtn @ Apr 9 2007, 01:03 PM) [snapback]420335[/snapback]</div>

True. We considered the Matrix (and the Nissan Versa) when we were shopping. If you do that comparison:

Matrix: $18,338
Prius: $23,370
Diff: $5032

I don't really consider that a "premium", though. The Prius seems like a "nicer" car, whatever that means. Like you say, it isn't apples-to-apples, since there isn't a hybrid Matrix and there isn't a gas-only Prius.

(I note the cargo capacity for the Matrix is listed at 53.2 cubic feet with the seats folded down, but they don't list it that way for the Prius. It just says 14.1 cf "luggage" capacity. Anybody know what it is with the seats folded down? For practical purposes, whatever it is it's a lot and it's all we need almost all the time.)
[/b]

We looked at the Matrix too when shopping for a Prius. One of the main differences in price is that the base Matrix truely is base with very little features. The base Prius comes loaded with features. The Matrix we would have been interested in had an MSRP of about 21K vs. 23.8K for the Option 1 Prius that we were interested in. One test drive was all it took to convice me that the Prius was the superior vehicle in almost all aspects; particulary acceleration, handling, and even suspenson (you could feel every bump in the road in the Matrix). Factor in the tax credit and fuel savings/environmental benefit and buying the Prius was a no-brainer. It was a pleasant surprise to be able to the negotiate for the Option 1 Prius we wanted at under dealer invoice (just under 22K). Would have been more than willing to pay sticker if that's what it took.

[onlynark]

rtn: are you sure those numbers are correct?

I looked at autos.yahoo.com, and the civic LX costs $17,760, perhaps you meant the EX? cause the EX with auto and nav costs $21,260 MSRP. And the civic hybrid with nav costs $24,350. Plus, the rebate I believe is 2500 not 2100. Where did you get these numbers btw?

[Ari]

In this article from today's CNN.com front page, there's now the "fuel efficient vehicle" penalty in the amount of $5000-6000 fabricated by GM :

http://money.cnn.com/2007/04/09/autos/plug...dex.htm?cnn=yes

I think I saw that somewhere else recently as well, and even in the original article there was no support for that number. If GM says it's so, then it must be true! The Hybrid Premium/Tax lives on....