If you are reading our blog, it is a good possibility that you already own a hybrid vehicle or are possibly interested in purchasing one. That’s great! Hybrids are the way of the future, and even now, we are seeing more and more hybrid vehicles making their way into homes across the country – and for good reason. One of the more common questions we are asked by those who are contemplating purchasing a hybrid, is whether they are a good investment or not. So today, we are going to look at the tangible return on investment (ROI) of owning a hybrid vehicle.
One of the main reasons why many people shy away from purchasing a hybrid vehicle is the initial outlay of money. Hybrids cost on average about 20% more than their gasoline powered counterpart. That fact alone can make some people decide against purchasing a hybrid. However, while the cost savings aren’t necessarily seen at the dealership, they will make themselves evident in just a few years of hybrid ownership.
Obviously, one of the biggest advantage to owning a hybrid vehicle is reduced fuel costs. When average gas prices hit a historic high in 2012, the ROI of a hybrid vehicle was realized in short order. During the times when gas prices are more modest, ROI takes a bit longer to be realized. That being said however, most hybrid vehicles break even and begin pulling ahead of their gas counterparts in just a couple of years, even with the larger initial investment.
Another cost advantage of a hybrid vehicle is reduced maintenance costs. There is significantly less wear and tear on a hybrid engine versus a gasoline engine. Because of the way hybrids are designed, the gas engine shuts down when the car is idling or when it is being driven at lower speeds, therefore preserving the engine. Hybrids also rely on a regenerative braking system, which translates into less friction and heat on the brake pads, allowing the whole braking system to last longer than standard vehicles.
If you happen to live in an area of high traffic and high congestion, hybrids are just the ROI you are looking for. It will only take a short time before you have already made your initial investment back and are basically putting money back in the bank. According to NerdWallet, electric-vehicle drivers can save over $10,000 on car ownership costs over five years, compared with those driving gasoline powered vehicles.
Many critics of hybrid vehicles, tout the cost of replacing a battery pack as the reason for why they would never buy a hybrid. While we can see why this was a concern years ago, when we really didn’t know how long a battery pack would last, now days this point is moot. Most companies offer 10 year warranties on their battery packs and we’ve seen hybrids go well over 200,000 on the original battery. Plus, if the battery pack does begin to fail and power is being lost, battery conditioning is always an effective, affordable alternative to battery replacement. Here at The Hybrid Shop, our battery conditioning service can restore the battery to over 90% of its original performance.
We have seen just about every hybrid available here in our shop, and the overwhelming consensus is that, yes, hybrids might cost a bit more upfront, but they are well worth the investment. And, even more than the monetary ROI, is the environmental savings that offer returns now and to future generations.