Hybrid Car Review

There's a discussion over at greenhybrid and the prius owners group on the consumer reports article claiming hybrid vehicles are more expensive to own in the long run. It seems that some are claiming their numbers are off.

Some of the claims Consumer Reports are making don't seem to make sense to me. For instance, hybrid cars do not depreciate at the same rate as their sister cars. Used hybrids sell very quickly for higher prices.

For instance, I peeked in at autotrader.com and searched for honda civics. A 2004 Honda Civic EX with 9,424 miles on it was being offered for $18,688. A 2003 Honda Civic Hybrid with 200,007 was being offered at $18,888. Now maybe that's a typo, but there was another 2003 Honda Civic Hybrid being sold at $19,488 with 41,027 miles. So the hybrid car that is 1 year older and 4 times as many miles is being sold for almost one thousand dollars more. Does this sound like they are depreciating at the same rate (or faster as Consumer Reports claims)?

Other problems I see with the report. They note the higher sticker price leads to higher costs in financing, sales tax, and insurance costs. The issue I have is the extra cost for insurance. Some companies are now offering discounts on insurance rates for hybrid owners.

Also, with federal and state tax relief and other rebates being offer (depending on your state), the extra cost of buying a hybrid is closer than it was. For instance, a poster at greenhybrid points out that consumers who buy a hybrid that gets over 40 mpg (EPA est.) highway don't have to pay sales tax. And of course, there are the little perks that hybrid owners have been getting, such as free parking, HOV access, etc... And all of this is before we add in any savings at the pump.

The only real concern about operating a hybrid over the years is in maintenance, but what some people don't realize is the lower cost of routine maintenance. For instance, you don't have to change the oil and the brakes as often. I would imagine larger issues will have larger bills, but it's hard to know. Hybrid cars tend to be very reliable and the batteries are guaranteed to last the life of the car (8 years?).