Are Hybrid Cars Really More Cost Effective?

If you listen to the car companies, hybrid cars are the best invention since sliced bread. While there are many reasons to buy a hybrid car, including a new tax incentive for US owners, it doesn't hurt to have a good understanding of how they work. This article explores the myths, benefits and drawbacks of owning one of these new "green" vehicles. Are hybrid cars really more cost effective?

What is a hybrid car? Basically, it's a normal, fuel efficient car that has two motors - an electric motor and a gasoline powered motor. It also uses a special system to store braking energy in an onboard battery. But why buy a hybrid? Why not buy a traditional gas or electric powered car? Keep in mind, one of the basic rules of science is the more complex the system, two motors instead on one, the more often it will break down. This is a hard question and, in the minds of some experts, not fully answered.

The reason for two motors is in the strengths and weaknesses of both types. The electric motors use no energy during idle, they turn off. At low speeds, electric use less than gas motors. Gas motors do better at high speeds and can deliver more power for a given motor weight. That means during rush hour stop and go driving, the electric motor works great and, as an added benefit, does not produce any exhaust thus reducing smog levels. At higher speeds above 40 mph, the gas motor kicks in and gives that peppy feel so many car owners look for when driving on the highway.

Another benefit of having the gas motor is it charges the batteries while it's running. Many an electric car owner has been stranded just out extension cord range of an outlet. Hybrid owners can forget about this annoyance; the gas motors starts automatically when the battery gets low and proceeds to charge the battery. A hybrid no longer needs to be plugged into an outlet. All this new technology comes at a price: a hybrid car is not cheap. With two motors and all the ancillary systems to manage them plus a large battery and a regeneration system used to produce electricity during breaking.

All of these systems must work together, adding complexity. While cars and, just as importantly, the computers that control them, have become more reliable, they still fail. Meaning owners of hybrids can expect more time in the shop and more expensive repair bills. Hybrids are the most gasoline efficient of all cars; they usually get 48 to 60 mpg (claimed). Not bad, but only 20% to 35% better than a fuel efficient gasoline powered vehicle like the Honda Civic that gets 36 mpg. But, when comparing prices, hybrids cost about $19,000 to $25,000 and hybrid cars cost anywhere from $14,000 to $17,000 -now the justification to buy one is becoming less clear. Indeed, the difference in average annual fuel bills, $405 for a Honda Insight versus $635 for a Honda Civic, means you may never make back the added initial cost of the more expensive hybrid. Over a ten year period of owning a hybrid will save you only $2,300, less than the cost difference for comparably equipped cars. Much of the fuel efficiency comes from improvements in aero dynamics, reduction of weight and, the biggest change: a smaller, less powerful gas engine. In reality, any car will get substantially better mileage just by reducing the engine size. The biggest reason this is not done has to do with the customer, they simply want the extra power.

But hybrid cars can offer more than just great gas mileage, they offer many other advantages as well. Even a small increase in fuel economy makes a large difference in emissions over the life of the car. Additionally, in large cities where pollution is at its worst, they make an even larger difference since they produce very little emissions during slow city driving and the unavoidable traffic jams.

While the US has just started producing hybrids, the Japanese are already a step ahead. Honda and Toyota are the two largest producers with their hybrids, the Insight and Prius. US car makers are actually far behind. In fact, during recent introduction of a new hybrid by GM - the Mercury Mariner, they admitted they had to license over 20 separate technologies from the Japanese.