Hybrid Folly

Just got back from the dentist's where I was perusing the latest Consumer Reports car issue, and I was a little surprised (but not terribly) by their assessment of hybrid cars' savings over purchasing a comparable standard auto measured over 5 years--with no savings attributed to any of the models. The best option CR could come up with was the Honda Civic hybrid, which only cost $3,000+ more in comparison to the standard engine vehicle over five years of use. I know CR is typically fairly conservative in its methodology and estimates, but this was a bit of a bummer to see in print.

But, lo and behold, one of my first stops back on the Mac in the office was to Gristmill, and they point to this LATimes story that notes a mea culpa from Consumer Reports:

Consumer Reports magazine said it erred in maintaining in an article in its April issue that none of the gasoline-electric hybrid cars and sport utility vehicles sold in the United States would save owners enough money in five years of use to make up for their higher prices.

Including fuel savings and tax credits, Consumer Reports said, the Toyota Prius hybrid would save about $400 over five years and the Honda Civic hybrid would save about $300 compared with conventionally powered models.

The magazine said it overestimated depreciation of the cars in arriving at its initial conclusion.

Here's another important caveat mentioned by CR:

The Toyota Prius and Honda Civic Hybrid provide a savings of about $400 and $300, respectively, over that period. But that is only if buyers are able to take advantage of limited federal tax credits.

What that's alluding to is the fact that the tax credit program starts phasing out once an automaker sells 60,000 vehicles. This LATimes story notes that the hot-selling Prius would most likely hit that 60K figure by the middle of the year.

Check out the CR comparison of all the hybrids.