Will Higher Gas Prices Boost Hybrid, EV Sales?

Edmunds.com

Will Higher Gas Prices Boost Hybrid, EV Sales?

With record-high gas prices, will sales of hybrids and electric vehicles rise? The economics improve with higher gas prices, and the choice of hybrids and EVS is wider than ever, but so too is the selection of high-mileage gas-engine vehicles.

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markwbrooks

In the case of the GM Volt vs the Cruze it looks like you got a few numbers wrong, like the real world eco cruze MPG.

Check out some of the great work done by Car and Driver comparing the two.
http://www.caranddriver.com/comparisons/2011-chevrolet-volt-vs-2011-chevrolet-cruze-eco-comparison-test

You need to use the real world numbers for both the Volt and the Cruze ( C&D says 20 city, but my experience is that if you are a careful driver, the cruze is an average of 30 MPG mixed hwy/city in the real world) you come up with a break even of 5 years more or less with $4 gas.

A number of other folks have run the numbers and everyone comes in more or less with a 5 year break even, not taking into account that after 5 years the volt is a much more valuable car than a cruze.

See for yourself:
http://gm-volt.com/2011/08/29/could-a-chevrolet-volt-cost-less-to-own-than-a-chevrolet-cruze/

That’s assuming gas at $3.60 a gallon, not the $4.00+ I paid the last time I filled up or the $5 we are going to see this summer.

Your mistake is fairly clear, have been caught in the fallacy of comparing best case highway MPG of the high end Cruze Eco ( not the base cruze) to worse case eMPG of the volt. Try it again with some real world numbers, the car buying public needs to know the truth…

john_kurmann

It's impossible to tell from the article just which Corolla you're comparing the Prius to, but I don't see how it can be "comparably-equipped" if it's TMV is just $16,814. The Prius Two comes with: a 6-speed touch-screen stereo, USB port, and hands-free phone capability; a steering wheel with audio, climate, Multi-Information Display and hands-free phone controls; the Touch Tracer Display; and the Smart Key system. To be "comparably-equipped," you need to at least step up to the Corolla LE with the optional steering wheel controls.

stephenpace_

I tend to keep my cars for a long time (the last two have been 10 years each), I would at least have a chance of recovering my money on most of these vehicles. However, you really have to view it a different way. Most of these electric versions have great acceleration compared to their gas-sipper equivalents (e.g. more fun to drive, an electric turbo charger of sorts). What is that worth to you over ten years? Also, I paid the Lexus price for navigation (~$1700 ten years ago) that I will never get back and which a Tom Tom could have sufficed considering I don't use it most of the time. Why do people buy things like navigation? Because people like their options, and they like the integration. Think of 'hybrid' as a $5k option that makes you feel better every time you fill up. And unlike navigation, it may actually have a chance of paying itself back. Even if it doesn't, just like navigation, you enjoyed having it--it was worth something to you over your ownership period.